Will vs. Trust: The Differences (Plain-English Guide)
Why this matters
A will and a trust can both pass assets to the people you choose, but they work differently. Understanding the differences helps you pick the right tools, avoid delays, and protect privacy. Family Harbor helps you organize documents, map access, and stay on track inside your own Google Drive; we don’t provide legal advice.
What a will is (and isn’t)
- A will states who receives your probate assets at death and who will act as executor.
- It can name guardians for minor children.
- It becomes effective only at death and is typically filed in probate court.
- It does not manage your assets during incapacity.
- It does not control assets that pass by beneficiary designation or title (life insurance, retirement accounts, TOD/POD accounts, joint tenancy).
Plain version: a will tells the court what to do with assets that must pass through probate and who’s in charge; it doesn’t help if you’re alive but unable to manage things.
What a revocable living trust is
- A revocable living trust is an agreement you create now. You (grantor) often serve as trustee and beneficiary while you’re alive.
- You title assets to the trust (or name the trust as beneficiary) so the trustee can manage them during life and incapacity and distribute them after death according to your terms.
- Properly funded, it often avoids probate and is generally private.
- You can change or revoke it while you have capacity; at death it typically becomes irrevocable.
Plain version: a trust holds title to assets now, gives someone legal authority to help if you can’t, and can pass assets without probate if you’ve moved them into the trust.
Key differences at a glance
- When it works
- Will: at death only
- Trust: now, during incapacity, and after death
- Court process
- Will: probate required for probate assets
- Trust: often avoids probate for assets titled to it
- Privacy
- Will: often public record in probate
- Trust: generally private
- Setup effort
- Will: simpler upfront
- Trust: requires funding (retitling accounts/real estate or beneficiary changes)
- Guardians for minors
- Will: can nominate guardians
- Trust: cannot nominate guardians (it manages property only)
- Incapacity plan
- Will: none
- Trust: trustee can step in; pairs well with powers of attorney
- Asset protection and taxes
- Standard revocable trusts do not shield assets from creditors and don’t reduce taxes by themselves (other trust types may)
The pour-over will
Even with a trust, you still have a short will that says any assets left outside the trust at death “pour over” into the trust. Anything that has to pour over will still go through probate, which is why funding the trust during life matters.
What neither a will nor a trust controls
- Beneficiary-designated assets: life insurance, 401(k)/IRA, annuities follow the beneficiary form
- TOD/POD accounts: pass directly to the named person
- Joint tenancy with right of survivorship: passes to the joint owner
Family Harbor’s Beneficiary Audit checklist helps you list and confirm these designations so they match your plan.
When a will-only plan can make sense
- Simple estate, all in one state, limited assets, and your family is comfortable with a basic probate process
- You mainly need to nominate guardians and name who inherits personal property and accounts
When adding a revocable trust is worth it
- You own real estate, especially in more than one state (avoids ancillary probate)
- You want a backup plan for incapacity beyond a financial power of attorney
- You prefer privacy and smoother administration
- You want staggered distributions (for example, at ages 25/30/35) or special provisions (blended family, special-needs planning, business interests)
Funding the trust (the part many people miss)
- Real estate: deed to the trust (often via attorney or title company)
- Brokerage and taxable investment accounts: retitle to the trust
- Bank accounts and CDs: retitle or use TOD to the trust per attorney advice
- Retirement accounts (401k/IRA): usually keep individual ownership; update beneficiaries (sometimes to a spouse or a see-through trust—ask your advisor)
- Life insurance: often name the trust as beneficiary, context-dependent
- Personal property: assignment or covered broadly by the will
Family Harbor includes a funding checklist, folder placeholders for deeds and confirmations, and a simple tracker for what was retitled and when.
Common myths and gotchas
- “I have a will, so there’s no probate.” A will directs probate; it doesn’t avoid it.
- “A revocable trust protects assets from nursing-home costs.” Not by itself; that’s an irrevocable planning topic.
- “Once I sign the trust, everything is automatically in it.” You must retitle or update beneficiaries.
- “Trusts are only for the very wealthy.” The benefits are about process, privacy, and incapacity, not just wealth.
- “I can scan my original will and toss the paper.” Keep the wet-ink original; courts often require it.
A simple, modern setup many families use
- Will (with guardians and pour-over), revocable trust, financial power of attorney, health-care power of attorney/advance directive, HIPAA release
- Beneficiary updates on life insurance and retirement plans
- Trust funding for real estate and brokerage at minimum
- Access map for who can see what now vs later and a document vault in Drive
Family Harbor organizes the folders, provides the access-map template, and keeps you moving with gentle reminders—while you and your attorney decide the legal content.
Quick FAQs
- Do I need both a will and a trust?
Many people do. Even with a trust you still keep a pour-over will for unfunded items and to name guardians.
- Can I change my revocable trust later?
Yes, while you have capacity you can amend or revoke it.
- What if I forget to fund the trust?
Your pour-over will may move assets into it at death, but those assets will likely face probate.
- Should retirement accounts be titled to the trust?
Often no; these usually stay in your name with beneficiary forms set carefully.
- I own a vacation home in another state—does a trust help?
Often yes; titling that property to your trust can avoid ancillary probate there.
How Family Harbor helps (without giving legal advice)
- A clean Drive structure for will, trust, powers of attorney, beneficiary confirmations, deeds, and statements
- A funding tracker to record retitling steps and upload confirmations
- The right people see the right things now, during incapacity, and later
- Reminders so you actually finish the unglamorous but critical steps
This guide is educational, not legal or tax advice. Laws and best practices vary by state and situation. Work with a qualified attorney or advisor to draft and implement your plan.