Will&Trust
Wills vs. Trusts: What’s the Difference and Why You Need One
When it comes to protecting your family and your assets, having life insurance is a great start—but it’s not the full picture. To ensure your wishes are honored and your loved ones are taken care of, you should also consider having a Will and possibly a Trust as part of your estate planning.
Many people confuse the two or don’t know which one they need. In this article, we’ll break down the key differences between a Will and a Trust, why they matter, and how they work together to protect your legacy.
What is a Will?
A Will is a legal document that outlines your wishes regarding:
- Who receives your assets after you pass away
- Who will care for your minor children (if applicable)
- Who will be in charge of managing your estate (called an executor)
Key Benefits of a Will:
- Simple to create and update
- Clearly states your wishes
- Appoints guardians for minor children
- Allows you to name an executor to handle your affairs
Things to Consider:
- A Will must go through probate, which is the legal process of settling your estate
- Probate can be time-consuming and potentially costly
- Wills become public record
What is a Trust?
A Trust is a legal entity that holds and manages your assets for your beneficiaries. There are many types of trusts, but the most common for estate planning is a Revocable Living Trust.
You, as the grantor, place your assets into the trust and manage them during your lifetime. When you pass, the successor trustee takes over and distributes the assets according to your instructions.
Key Benefits of a Trust:
- Avoids probate, saving time and keeping your estate private
- Can provide more control over how and when assets are distributed (e.g., to minor children or heirs with special needs)
- Helps with incapacity planning—if you become unable to manage your affairs, the trustee can step in
- Useful for larger or more complex estates
Will vs. Trust – Quick Comparison
Feature | Will | Trust |
Takes effect | After death | Immediately (if funded) |
Goes through probate | Yes | No |
Privacy | Public record | Private |
Controls asset distribution | Basic instructions | Detailed, controlled |
Cost | Lower upfront cost | Higher upfront cost |
Guardian for minors | Yes | No (but can be used together) |
Why You Need Estate Planning – Even If You’re Not Wealthy
Many people think estate planning is only for the rich—but that’s a dangerous myth.
If you:
- Own property or a home
- Have minor children
- Have life insurance, savings, or investments
- Want to make things easier for your loved ones after you pass
…then you need at least a basic estate plan that includes a Will—and possibly a Trust, depending on your needs.
How Wills, Trusts & Life Insurance Work Together
Life insurance provides immediate funds to your beneficiaries. But without a Will or Trust, those funds may be tied up in probate or not distributed according to your wishes.
A proper estate plan helps ensure:
- Life insurance benefits go to the right people
- Minor children are protected
- Assets are transferred smoothly and efficiently
- Your legacy is carried out the way you intend