Understanding the Difference Between Wills and Trusts

When most people think about estate planning, the first thing that comes to mind is creating a will. But in many cases, a trust can provide more control, more privacy, and fewer legal complications for your family. So which one do you need?

The answer depends on your financial situation, your family structure, and your long-term goals. Wills and trusts serve different purposes, and understanding those differences is the first step to making the right decision for your legacy.

What Is a Will?

A will is a legal document that outlines your final wishes—how you want your assets distributed, who should take care of your minor children, and who will oversee your estate after you pass. It only takes effect after your death.

Wills are:

• Simple to create
  
• Public record after death
  
• Subject to probate
  
• Best for basic instructions and smaller estates

Wills do not cover assets with named beneficiaries (like life insurance or retirement accounts), and they don’t help your family avoid the probate process.

What Is a Trust?

A trust is a legal entity you create to hold and manage your assets. You can place your property, investments, and other assets into the trust while you’re still alive. You also decide who manages those assets (the trustee) and who benefits from them (the beneficiaries).

Trusts are:

• Effective immediately upon creation
  
• Able to bypass probate entirely
  
• Private and not part of the public record
  
• More complex but offer greater control

Trusts can distribute your assets over time, protect beneficiaries from making poor financial decisions, and help avoid legal challenges after your death.

Key Differences That Affect Your Decision

Here’s a closer look at how wills and trusts compare across critical areas:

1. Probate Avoidance
   Wills must go through probate—a court-supervised process that can take months or even years. Trusts avoid probate, allowing assets to be transferred more quickly and privately.
2. Privacy
   Wills become public record once filed with the court. Trusts are private and stay out of the public eye.
3. Timing
   A will only applies after death. A trust can manage your affairs while you’re still alive and if you become incapacitated.
4. Cost and Complexity
   Wills are less expensive and easier to create upfront. Trusts involve more setup but often save your family time and money later.
5. Flexibility
   Trusts allow you to set conditions. For example, you can control when a child receives their inheritance or how it must be used.

When a Will Might Be Enough

If you have a simple estate—few assets, no minor children, and no special conditions—you may only need a basic will. It allows you to:

• Name beneficiaries
  
• Choose a guardian for your children
  
• Appoint an executor

That said, even simple estates can benefit from a living trust if you want to avoid probate or plan for incapacity.

When a Trust Makes Sense

Trusts are ideal if you:

• Own a home or multiple properties
  
• Have children from a previous marriage
  
• Want to avoid probate
  
• Want to control how heirs receive their inheritance
  
• Need to provide for a special needs beneficiary
  
• Expect potential disputes among family members

Even modest estates can benefit from the privacy, speed, and flexibility a trust provides.

Do You Need Both a Will and a Trust?

In many cases, yes. A will can serve as a backup document for any assets not placed in your trust. This is known as a “pour-over will,” and it ensures your remaining assets are transferred to the trust after death.

So even if a trust is your primary estate planning tool, a will still plays an important supporting role.

How to Choose the Right Option for Your Situation

The best estate plans are based on personal goals, not assumptions. At MB Wealth Advisors, we help you weigh your options and determine whether a will, a trust, or a combination of both makes the most sense for your life and legacy.

We use a secure, attorney-approved digital platform to create your estate documents, saving you time and money—while ensuring full legal compliance. You’ll get professional guidance throughout the process, without the traditional legal fees.

Avoid Common Mistakes With a Smart Strategy

Many people don’t update their wills. Others create a trust but forget to fund it. Some name beneficiaries in their will for accounts that already have listed beneficiaries, which causes conflicts.

That’s why we don’t just help you create documents—we help you understand how they work, how they fit together, and how to keep them current.

Start Your Plan With Confidence

Estate planning isn’t one-size-fits-all. Whether you need a will, a trust, or both, we’ll help you get it right—so your wishes are honored and your family is protected.

Ready to take the next step? Learn more about our Estate Planning Services, call (704) 584-9363, or fill out our secure form at mbwealthadvisors.com/contact/#connect.