When it comes to planning for the future, understanding the differences between a Last Will and Testament and a Revocable Living Trust is crucial to ensuring your wishes are carried out effectively with minimal complications. While both are essential estate planning tools, they serve distinct purposes and operate in significantly different ways.
What Is a Will?
A Last Will and Testament (“Will”) is a legal document that specifies how a person’s assets will be distributed to their heirs after death. It provides guidance for handling the estate and helps avoid arguments among family members. A Will also names the executor, the individual who will manage the estate, and can include instructions like who will take care of minor children, and details about funeral arrangements
What Is a Trust?
A Trust is a legal document which transfers assets to a trustee, who is in charge of managing it for the benefit of the beneficiaries. Trusts are very flexible—they can be set up to be used while the person is still alive (Revocable Living Trust) or after they pass away in the Will (Testamentary Trust). They can be set up to go to family members, friends, charities, educational institutions, religious organizations, nonprofit organizations, businesses, causes, and other institutions as well.
Public vs. Private
A Will is a public document. After your passing, the will is submitted to the court, where it becomes part of the public record. The person you’ve designated to administer your estate, known as the executor, operates under the court’s supervision throughout the process.
A Trust, on the other hand, can be a private document if it is a Revocable Living Trust. It does not require court oversight, allowing for more discretion and confidentiality.
Court Involvement
A Will is taken to the court, it’s recorded at the court, and the individual who you’ve selected to administer your estate is under court purview while the estate is being administered. This process can be time-consuming, costly, and often involves legal fees.
In contrast, a Revocable Living Trust, during your lifetime, you serve as the trustee of your trust, managing your assets as you see fit. In the event of your incapacity or death, a successor trustee seamlessly steps up. This eliminates the need for court appointments, streamlining the process for your loved ones, and it allows for a lot more flexibility in how your beneficiaries inherit your assets from you.
Will or Trust? You Don’t Have to Choose—You Need Both
Having both a Will and a Trust creates a comprehensive estate plan that addresses a variety of needs. A Will allows you to name guardians for minor children, specify personal wishes, and manage assets not included in a trust, serving as a safety net to ensure no detail is overlooked. A Revocable Living Trust, established during your lifetime, lets you manage assets while you’re alive, provides privacy, and avoids probate for included assets. Together, they complement each other, filling gaps the other cannot. By combining them, you can ensure your assets are distributed efficiently, your loved ones are protected, and your wishes are honored—all with fewer complications.
Consulting with an experienced estate planning attorney can help you determine the best approach for your needs. By planning ahead, you can provide clarity and peace of mind for yourself and your loved ones.
