The Differences Between a Will and a Trust in Your Estate Plan
A well-crafted estate plan is essential to ensure your assets are distributed according to your wishes and your family is protected. Two of the most common tools in estate planning are wills and trusts. Understanding the differences between them can help you choose the right approach for your situation.
At Sound Retirement Solutions, we help clients integrate wills and trusts into a complete retirement plan, coordinating them with income strategies, over 65 healthcare planning, life insurance, and retirement goals.
What Is a Will?
A will is a legal document that outlines how your assets should be distributed after your death. It can also name guardians for minor children and specify instructions for personal property.
Key Features of a Will:
Takes effect only after your death
Requires probate, which is the legal process to validate the will
Publicly accessible once filed in probate court
Easier and less expensive to create compared to a trust
A will is a straightforward way to communicate your wishes, but it may not provide privacy or immediate control over asset distribution.
What Is a Trust?
A trust is a legal arrangement where a trustee manages assets on behalf of beneficiaries. Trusts can take effect during your lifetime (living trust) or after your death.
Key Features of a Trust:
Can provide control over when and how assets are distributed
Avoids probate, which can save time and maintain privacy
Offers flexibility for complex family situations or long-term planning
Can protect assets from creditors or mismanagement
Trusts are often used in conjunction with a will to create a comprehensive estate plan.
Choosing Between a Will and a Trust
The choice between a will and a trust depends on your goals, family circumstances, and complexity of your estate:
A will may be sufficient for straightforward estates, smaller asset portfolios, or when simplicity is preferred.
A trust may be beneficial for larger estates, blended families, or when privacy and asset protection are priorities.
A retirement planner can help determine which combination of tools aligns with your overall retirement and legacy planning goals.
Coordinating With Retirement and Healthcare Planning
Estate planning should not be isolated from your broader retirement strategy. Integrating a will or trust with income planning, life insurance, and over 65 healthcare planning ensures your assets are protected and your family’s needs are met without compromising your lifestyle or financial security.
Reviewing and Updating Your Plan
Life events—such as marriage, the birth of children, or changes in assets—can affect your estate plan. Regular reviews help ensure your will or trust continues to reflect your wishes and aligns with your retirement and healthcare goals.
Moving Forward With Confidence
Understanding the differences between a will and a trust allows you to make informed decisions and create a comprehensive estate plan that protects your family and assets. With proper planning, you can leave a lasting legacy while maintaining peace of mind.
If you are approaching retirement or already retired and want guidance on incorporating a will or trust into your estate plan, we invite you to schedule a conversation with a retirement planner at Sound Retirement Solutions. Together, we can create a strategy that safeguards your assets, supports your income, and ensures your wishes are honored for years to come.
