Wills vs. Trusts: Do You Need One, the Other—or Both?

You’ve spent decades building your nest egg, protecting your income, and planning for retirement. But what about planning for what happens after you’re gone?

For many retirees, this brings up a key question:

What’s the difference between a will and a trust—and do I need both?

The truth is, while they’re both essential estate planning tools, a will and a trust serve very different purposes. Knowing how each works—and when to use them—can help you protect your assets, minimize court involvement, and make life easier for your loved ones.

What Is a Will?

A will is a legal document that outlines how your assets should be distributed after your death. It also allows you to:

• Appoint an executor (someone to carry out your wishes)
• Name guardians for minor children or dependents
• Make specific gifts (property, money, heirlooms)

Wills go through probate, which is the court-supervised process of validating your will and distributing your estate.

What Is a Trust?

A trust is a legal entity you create to hold and manage assets—both during your life and after your death. There are many types of trusts, but the most common for estate planning is a revocable living trust.

With a trust, you:

• Transfer ownership of assets to the trust while you’re alive
• Name a trustee to manage those assets (often yourself, initially)
• Appoint a successor trustee to take over upon your death or incapacity

Unlike a will, a properly funded trust avoids probate entirely.

Key Differences: Will vs. Trust

When You Need a Will

Even if you have a trust, a will is still important—especially for things your trust might not cover.

You need a will if:

• You want to name a guardian for minor children or dependents
• You haven’t moved all of your assets into a trust
• You want to make specific gifts (like jewelry or collectibles)
• You want a backup plan if your trust isn’t fully funded

This is often called a “pour-over will,” which directs any leftover assets into your trust upon your death.

When You Need a Trust

A trust offers benefits a will alone cannot—especially if your estate or family situation is more complex.

You should consider a trust if you:

• Want to avoid probate and speed up asset distribution
• Own property in multiple states
• Have a blended family or complicated inheritance wishes
• Want to manage how and when heirs receive money
• Want privacy—trusts aren’t public record

Are planning for potential incapacity and want someone to manage your affairs without court involvement

Do You Need Both?

In many cases, yes—you need both a will and a trust.

• The trust manages and distributes your major assets privately and efficiently.
• The will ensures anything left out of the trust gets handled properly—and names guardians, if needed.

Together, they form a complete estate plan that reduces legal risks, avoids unnecessary delays, and makes life easier for the people you love.

What Is a Living Trust—and Why It’s a Popular Estate Planning Tool

A living trust (also called a revocable living trust) is one of the most powerful tools you can use to manage your estate—especially in retirement.

It’s called a living trust because it goes into effect while you’re still alive—not after your death like a will. You can create the trust, place assets inside it, and even serve as your own trustee, meaning you retain full control of your property.

What makes a living trust especially attractive is how it allows for:

• Seamless asset management if you become incapacitated
• Private distribution of your estate after death (unlike the public probate process)
• Faster access for your heirs—no court delays or probate fees
• Continuity of control, since your successor trustee steps in immediately when needed

Common Assets to Place in a Living Trust:

• Your home or other real estate
• Bank and brokerage accounts
• Non-retirement investment accounts
• Business interests
• Valuable personal property (art, collections, etc.)

What’s the difference between a will and a trust—and do I need both?

Action Step: Talk to a Professional

Creating a trust or a will on your own can lead to costly mistakes. An experienced estate planning attorney or retirement-focused financial professional can help you:

• Choose the right tools for your needs
• Align your beneficiary designations with your documents
• Properly title your assets to avoid conflict and probate

⚠️ Important Note: Your retirement accounts (like IRAs or 401(k)s) typically aren’t placed in a trust—but your beneficiary designations for those accounts must still align with your overall estate plan.

If you’re unsure, now is the time to review your plan—and make the necessary updates.

🧑‍💼 Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.

Disclaimer: This article is for educational purposes only and does not constitute legal or financial advice. Please consult a qualified estate planning attorney or financial professional for personalized guidance.