What is the difference between a will and a trust?

A will directs how assets are distributed after death, while a trust can manage assets during life, avoid probate, and provide ongoing management after death. Both are estate planning tools, but they serve different functions.

A will becomes effective only upon death. It names an executor, directs asset distribution, and allows parents to designate guardians for minor children. However, if assets are not held in a trust and have no beneficiary on file, they must pass through probate, which is the court-supervised process of administering an estate. A will also does not provide a mechanism for long-term management of assets after death.

A trust, particularly a revocable living trust, can hold assets during your lifetime and specify how they are managed and distributed after death. Assets properly funded into a trust generally avoid probate. Trusts can also provide ongoing management of assets for beneficiaries over time, rather than distributing everything at once.

In some cases, trusts may also support estate tax planning strategies, particularly for married couples, depending on the structure and overall estate.

Understanding the distinction allows individuals to choose the structure that best aligns with their goals, family dynamics, and long-term planning needs.