What is the Difference Between a Will and a Trust?

As our client community knows, there are many tools available for individuals undergoing the estate planning process. Two of these tools are the will and the trust, and there are important differences between the two. To find out whether a will or a trust is better for your individualized estate plan, we always recommend that you contact an experienced Houston estate planning attorney that can apply the law to your goals and circumstances.

What is a Will?

In short, a will is a legal document that dictates how your property will be distributed upon your death. The will typically lists assets the beneficiaries, and it provides instructions for how exactly to dole out these assets. The probate court is typically involved in making sure the will is valid and in giving a stamp of approval to distribute the will’s assets.

What is a Trust?

A trust, on the other hand, is not a legal document but a legal contract. The trust puts assets into an account, and that account is managed by another person. A trust also has beneficiaries, just like a will. The trust, though, directs the manager (the “trustee”) to distribute the assets in a way that aligns with the trust’s goals.

Major Differences

One big difference between the will and the trust is that the trust provides for more privacy than the will. The trust is a private legal structure, and the trust typically obviates the need to go through probate. This means that a probate court will typically not have to review the trust at all, and the assets can go directly to beneficiaries without anyone having to go to court.

Another difference is that trusts are typically more expensive to establish than wills. There are many different kinds of trusts, including trusts that are established during a grantor’s life (i.e., trusts are not just tools that are available for estate planning, but for life planning as well). It takes more effort to determine exactly which trust might be right for your circumstances, and this can require more time and resources than writing a will.

Lastly, the trust provides significantly more tax benefits than a will, in that it allows the trust’s grantor to avoid certain taxes on assets contained within the trust. The trust can also shield grantors from creditors, when structured correctly. These benefits can make a big difference for those wanting to keep their assets safe from third parties.

Have You Found Your Houston Estate Planning Attorney?

At McCulloch & Miller, PLLC, we have over 35 years of experience providing legal services to Texans as they make their estate plans. Our representation is centered on thorough and experience-based strategies, and we take pride in making sure our clients know that we are beside them every step of the way.
If you are looking for a Houston estate planning attorney for you or a loved one, give us a call today at 713-955-7281. If you prefer, you can also fill out our online form to have an attorney reach back out to you as soon as possible regarding your estate plan.