Wills vs. Trusts: What’s the Difference—and Why a Trust or TOD Might Be Better for You

When planning for the future, many people think a will is all they need. While wills are an essential estate planning tool, they may not always be the most efficient way to pass on your assets. Trusts—and in some cases, Transfer on Death (TOD) documents—can offer added benefits that streamline the process for your loved ones.

What Is a Will?

A will is a legal document that outlines your wishes for how your property and possessions should be distributed after your death. It can also name guardians for minor children and specify funeral wishes.

Key features of a will:

• Goes into effect only after you die

• Requires probate (a legal process overseen by the court)

• Becomes public record

• Allows you to name an executor to manage your estate

  
  

What Is a Trust?

A trust, specifically a revocable living trust, is a legal arrangement where you (the grantor) transfer ownership of assets to a trust during your lifetime. You maintain control as the trustee and designate a successor trustee to manage the trust upon your death or incapacity.

Key features of a trust:

• Avoids probate

• Becomes effective immediately upon creation (not just after death)

• Remains private

• Can manage assets during incapacity, not just after death

  
  

Similarities Between a Will and a Trust:

• Both let you name beneficiaries to inherit your assets.

• Both allow you to specify who handles your estate or trust (executor or trustee).

• Both can be changed or revoked during your lifetime (if the trust is revocable).

• Both are key components of a comprehensive estate plan.

Differences Between a Will and a Trust:

Feature	Will	Trust
Probate Required	Yes	No
Effective	After death	Immediately
Privacy	Public	Private
Incapacity Planning	No	Yes
Court Supervision	Often	Rarely

Why a Trust or TOD Might Be a Better Fit

If your primary goal is to avoid probate, minimize delays, and keep your affairs private, a trust can be an excellent choice. It simplifies the transition of assets, especially if you own property in more than one state, have minor children, or want to plan for incapacity.

Alternatively, for simpler estates, a Transfer on Death (TOD) designation may suffice. TOD documents allow you to name beneficiaries directly on accounts like bank accounts, retirement funds, and real estate (where available), letting those assets pass outside of probate without the need for a trust.

Bottom Line

A will is better than no plan at all—but it may not offer the speed, privacy, or flexibility your loved one's need during a difficult time. A trust offers more control and avoids court involvement, while TOD designations can be a simple and cost-effective solution for specific assets. Depending on your situation, a combination of all three may be ideal.

Consider speaking with an estate planning professional to determine the best approach for your goals and your family.