Why This Matters
Estate planning is about making sure your wishes are carried out and your assets are handled the way you intend. Two of the most common tools used are a will and a trust—and while they may sound similar, they serve different purposes.
What Is a Will?
A will is a legal document that outlines your wishes after you pass away.
What a Will Can Do:
~ Specify who receives your assets
~ Name guardians for minor children
~ Appoint an executor to carry out your wishes
Important Things to Know:
~ A will only takes effect after death
~ It typically goes through probate (a court-supervised process)
~ Probate can take time and may involve public records
What Is Probate?
Probate is the legal process through which a court oversees the distribution of a person's assets after death.
What Typically Happens During Probate:
~ The will is validated by the court (if one exists)
~ An executor or administrator is officially appointed
~ Debts and taxes are identified and paid
~ Remaining assets are distributed to beneficiaries
General Considerations:
~ Probate timelines can vary, often taking several months or longer depending on complexity
~ Court and administrative costs may apply
~ Probate proceedings are generally part of the public record
What Is a Trust?
A trust is a legal arrangement that allows a third party (trustee) to manage assets on behalf of beneficiaries.
What a Trust Can Do:
~ Manage assets during your lifetime and after death
~ May help avoid probate (in many cases)
~ Can provide more control over how and when assets are distributed
~ May offer a greater level of privacy since it typically does not go through probate court
Types of Trusts (Simplified):
~ Revocable Trust: Can be changed or revoked during your lifetime
~ Irrevocable Trust: Generally cannot be changed once established
Key Differences at a Glance
Will vs Trust:
~ When it takes effect: Will = After death | Trust = During life and after death
~ Probate required: Will = Yes | Trust = Often no
~ Privacy: Will = Public record | Trust = Generally private
~ Control: Will = Basic | Trust = More detailed
~ Manage assets during life: Will = No | Trust = Yes
When Might You Use a Will?
~You want a simple, straightforward estate plan
~You need to name guardians for minor children
~ You have a smaller or less complex estate
When Might You Consider a Trust?
~You want to avoid probate
~You prefer more control over how assets are distributed
~You want privacy in how your estate is handled
~You have a more complex financial situation
Can You Have Both?
Yes. Many people use both a will and a trust as part of a comprehensive estate plan. A trust can handle assets, while a will can cover anything not included in the trust and name guardians.
Final Thoughts
A will and a trust are not one-size-fits-all tools. The right approach depends on your personal situation, goals, and preferences. Working with qualified professionals—such as an estate attorney and financial professional—can help align your plan with your overall financial strategy.
Securities & Advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individuals.