What is the Difference Between a Will and Trust?
2 minute read
A will lets you nominate guardians for kids and pets, designate where assets go, and specify final arrangements. A trust can provide greater control over when and how your assets are distributed. Trusts are often used to minimize or avoid probate entirely. (Probate is a legal process to distribute a deceased person’s estate; most people prefer to avoid it because of the cost and time required.)
While Wills and Trusts do have a lot of overlap, there are also several differences between the two. Ultimately, both are ways to say who will receive your assets. They just do it in different ways, and each has its own advantages and disadvantages.
One big difference between the two is in how and when they take effect. Wills don’t go into effect until you pass away, whereas a Trust is effective immediately upon signing and funding it.
It may be easier to think of a Will as a “simple” document. Wills allow you to:
- Name guardians for kids and pets
- Designate where your assets go
- Specify final arrangements
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