Protecting your children means planning for more than today. As your family grows, you may be wondering whether a will, a trust, or a combination of both is the right way to safeguard your family’s future.
The answer depends on your goals, assets, and family circumstances. In this guide, we’ll explain the differences between wills and trusts, when each may be appropriate, and why many parents choose to have both as part of a comprehensive estate plan.
At Foster + Bloom, we help families create personalized estate plans that provide clarity, protection, and peace of mind. We’re here to help you build a plan for the future.
What Is a Will?
A last will and testament is a foundational legal document that outlines your final wishes. For parents of minor children, a will is often the most important estate planning document because it allows you to officially name legal guardians for your children. A will also allows you to:
- Name a trusted guardian to care for your children if you are no longer able to do so
- Specify who should receive your personal belongings, savings, and other assets
- Name an executor to manage the distribution of your estate and ensure your wishes are carried out
What Is a Trust?
A trust is a legal arrangement where you transfer ownership of your assets to a trustee, who holds and manages those assets for the benefit of your chosen beneficiaries. Unlike a will, which only goes into effect after you pass away, a trust is active as soon as you sign it and fund it. A living trust allows you to:
- Retain complete control over how and when your children receive their inheritance.
- Protect your family’s privacy, as trusts do not become a matter of public record.
- Appoint a successor trustee to manage assets for minor children, preventing them from inheriting large sums of money before they are mature enough to handle them.
A trust provides a level of ongoing management that helps protect your hard-earned assets for generations to come.
Trust vs. Will: Key Differences
Both wills and trusts can help protect your family and distribute your assets, but they work in different ways. Understanding the key differences can help you decide which option best fits your family’s needs.
- Control During Your Lifetime: A will only takes effect after your death. A revocable living trust, however, can be used to manage assets during your lifetime and can provide a plan for managing those assets if you become incapacitated.
- Privacy: A will typically goes through probate, which is a public court process. A trust is generally administered privately, allowing details about your assets and distributions to remain confidential.
- Cost: A will is usually less expensive whereas a trust requires upfront planning and expense. However, it may help reduce probate-related costs and delays for your family.
- Probate and Administration: Assets distributed through a will generally pass through probate before they can be transferred to beneficiaries. Assets held in a trust can be distributed without court involvement, allowing for a more streamlined process.
- Distribution of Assets: A will generally distributes assets after probate is complete. A trust can provide more flexibility by allowing you to set specific terms for when and how beneficiaries receive assets.
How Does Probate Affect Wills and Trusts?
Probate is the legal process of settling a person’s estate after they pass away. The process typically includes:
- Validating the will
- Identifying and valuing assets
- Paying outstanding debts and taxes
- Distributing remaining assets to beneficiaries
A will does not avoid probate. Instead, it provides instructions for how assets should be distributed during the probate process. A properly funded trust can help assets avoid probate and pass directly to beneficiaries according to the terms of the trust.
Probate considerations often influence estate planning decisions because probate can take time, involve court oversight, and create additional costs for an estate. For this reason, many families choose to incorporate a trust into their estate plan.
Can You Have Both a Will and a Trust?
The right choice depends on your family’s needs, the types of assets you own, and the level of control you want over how those assets are managed and distributed. In many cases, families benefit from having both a will and a trust as part of a comprehensive estate plan. When you have both, you ensure that:
- Your Children Are Protected: Your will names the legal guardians for your children, which is something a trust cannot do.
- No Assets Are Left Behind: If you acquire new assets but forget to officially transfer them into your trust before you pass away, the pour-over will automatically pours those remaining assets into your trust upon your death.
- Your Privacy is Maintained: By funneling your remaining assets into your trust, the details of your distributions remain entirely private.
Rather than competing with one another, a will and a trust work hand-in-hand to create a seamless safety net for your loved ones.
Choosing the Right Estate Plan for Your Family
There is no one-size-fits all approach to protecting your family. The right plan for you depends entirely on your family’s unique dynamics, your assets, and your goals for the future.
If you’re unsure which option is right for your family, an experienced trust and wills attorney can help you evaluate your needs and create a plan that reflects your goals. At Foster + Bloom, we work with families to develop personalized estate plans designed to protect what matters most.
Which Option Gives My Family the Most Flexibility in the Future?
A revocable living trust generally offers the most long-term flexibility. Since it is revocable, you can change, update, or completely dismantle the trust at any point during your life as your family grows or your financial situation changes.
How Do I Know if My Current Estate Plan is Still Meeting My Family’s Needs?
Your estate plan should be reviewed whenever your family or financial circumstances change. Major life events such as welcoming a child, completing an adoption, growing your family through surrogacy, getting married or divorced, or moving to a new state may warrant updates to your existing documents.
Build a Plan That Fits Your Family
Creating an estate plan is one of the most important steps you can take to protect your family and prepare for the future. Whether you’re creating a will, establishing a trust, or updating existing documents, having a plan in place can help ensure your wishes are honored and your loved ones are protected.
At Foster + Bloom, we help families create personalized estate plans that reflect their unique needs and goals. Contact our team today to schedule a consultation and learn how we can help you protect what matters most.