20+ Differences between Trust And Will (Explained)

Life is unpredictable, and deciding what a person wants to do with their property after death is crucial. Anyone who wants to decide about their property and children post-death has two options: Trust and Will.

Both terms are often confused with one another and used interchangeably. The major difference between the two is that a Trust becomes active the moment it is made, whereas a Will becomes active on the death of the concerned individual.

Comparison Between A Trust And A Will

Parameter	Trust	Will
Meaning and Purpose	It refers to a document clearly stating how an individual’s property and assets will be handled. This document’s main purpose is to ensure everything happens as planned by the concerned individual after his death.	It refers to a document clearly stating who will be the heir and guardian of an individual’s property, assets, and children. This document’s sole purpose is to ensure the right person becomes the heir of the property and assets and guardian of an individual’s children after his death.
Types	It can broadly be categorized into two types: Revocable and Irrevocable Trust.	It can broadly be categorized into four categories: Living, Testamentary, Holographic, and Oral Wills.
Come into play	The hallmark feature of Trust is that it comes into play immediately after it is made. Unlike Wills, it does not wait till the death of an individual to become active.	The classic feature of a Will is that it becomes active or comes into play only after the death of the concerned individual.
Considers	It considers not only death but incapacitating also.	It only considers death.
Effective period	A Trust might become active right after it is made, but it becomes valid only after the death or incapacitation of the concerned individual. A person is considered incapacitated when he can not take care of himself.	It becomes valid only after the death of the concerned individual.
Parties involved	Three parties are involved in the making of a Trust. And these are Settlor, Trustee, and Beneficiary.	There are four parties involved in the making of a Will. And these are Testator, Executor, Witnesses, and Beneficiary.
Probate	Generally, when people make Wills, they must get it officially by probate. One of the major advantages of a Trust is that it does not require probate.	Probate is mandatory in the case of Wills.
Guardian	One of the major drawbacks of a Trust is that it provides no provision for guardians.	It provides provisions not only for property and assets but also provides provision for guardians as well. An individual can mention in his Will who will be the guardian of his kids after his death.
Expiry	If anyone among the Settlors, Trustees and Beneficiaries dies, the concerned Trust stays valid for 21 years.	It does not have an expiration date.

Major Differences Between A Trust And A Will

What exactly is Trust?

A legal document that states an individual’s choices on how his property, assets, and he should be treated, is known as a Trust. The classic feature of this legal document is that it becomes active or comes into play the moment it is made.

The document that states all the wishes of the concerned person is known as the Trust Deed. The parties involved in making a Trust Deed are the Settlor, trustee, and beneficiary.

Key Takeaways of a Trust

It is a document that states an individual’s wishes on how his property and assets should be handled.

The document that states all the required things is known as Trust Deed.

The Settlor, trustee, and beneficiary are the three parties involved in Trust.

It can broadly be categorized into four categories: Living, Testamentary, Revocable, and Irrevocable.

The major benefit of a Trust is that it does not involve any legal process, otherwise known as probate.

Key Differences: Trust

It is a document concerned with an individual’s choice of how his property and assets should be handled. Along with that, this document also states how he should be handled if he becomes incapacitated.

One of the significant features of a Trust that distinguishes it from a Will is that it becomes active or comes into force the moment it is made.

It does not have to go through probate when it is time to pass on the property or assets per the wishes of the concerned individual.

What exactly is a Will?

A legal document that states an individual’s choices on how he wants his property and assets to be handled after his death. It also states who the concerned individual wants as a guardian of his kids.

The hallmark feature of a Will is that it becomes active or comes into play only after the death of the concerned individual. The parties involved in this process are referred to as the Testator, executor, witnesses, and beneficiaries.

Key Takeaways of A Will

It is a document that states an individual’s choices on who should receive his property and assets after his death. It also states who should care for his kids as their guardians after his death.

The executor, Testator, beneficiaries, and witnesses are the four parties involved in the process of making a Will.

It is considered a legal document, but the whole process has to go through probate for the final decision.

It should be noted that this document does not come into play until the concerned individual has died.

Key Differences Will

It is a document that is concerned with an individual’s choice regarding who should receive his assets and property and who should take care of his children after his death. Along with that, it also states the last wishes of the concerned individual.

One of the hallmark features of a Will is that it does not become active or come into force until the death of the concerned individual.

Unlike a Trust, it does have to go through probate, and then the legal system works as per the wishes of the concerned person.

The Contrast between A Trust And A Will

Meaning and Purpose

Trust is a document stating an individual’s choices regarding his property and assets. The main purpose of a Trust is to make sure that the property and assets of the concerned individual are handled the way he/she wants. The document stating all these purposes is known as Trust Deed.

Will is a document that states an individual’s choices regarding who would become the heir to his property and assets and who would become his children’s guardian after his death. The document stating all these purposes is known as Will.

Types

Trust can broadly be distinguished based on two categories: Revocable and Irrevocable Trust. A Revocable Trust is a document that provides full control, meaning it can be changed as and when wanted. An Irrevocable Trust is a document that works exactly opposite to Revocable Trust, meaning it can not be ever changed.

Will – It can broadly be categorized into four categories: Living, Testamentary, Holographic, and Oral Wills. A Living Will is a document that states various properties and assets that the concerned individual would use for his benefit until he is alive.

Testamentary Will states the property and assets to be distributed after the Settlor’s death. Holographic Wills are Wills that generally do not have the presence of witnesses. Finally, Oral Wills, as the name suggests, is a type of Will that is made orally; however, they are not valid in many states.

Types of Trusts and Wills

Trust

Revocable Trust – These types of Trusts are known for their flexibility. These Trusts can be edited, changed, and even canceled as per the wishes of the Settlor.

Irrevocable Trust – These types of Trusts are completely opposite to Revocable Trusts. These Trusts are rigid, meaning they can not be edited or changed. They, once made, stay the same even if the Settlor wishes otherwise.

Will

Living Will – This type of Will is specifically used for the benefit of the Testator. This Will states that the Testator would benefit from his property and assets until his death.

Testamentary Will is the most commonly used Will that states how the Testator’s property and assets would be distributed after his death.

Holographic Will – The classic feature of this type of Will is that it takes place without the presence of any witnesses. Due to this reason, in many regions, this Will is generally not accepted.

Oral Will – This type of Will takes place in an oral rather than a written format. Due to this reason, it might be a little difficult to provide proof of this Will. And thus, this type of Will is not accepted in most regions.

Comes into play

Trust – One of the unique features of this document is that it comes into play immediately after it is made. This is considered the main difference that distinguishes a Trust from a Will.

Will – One of the classic features of this document is that it does not come into play until the death of the concerned individual. It only comes into play after the concerned individual has died.

Effective period

Trust – It is considered to be valid as and when the Settlor dies or becomes incapacitated.

Will – It is considered to be valid only after the death of the Testator.

Parties involved

Trust –

The parties involved in making a Trust are Settlor, the trustee, and the beneficiary. A settlor is considered as the concerned individual who wants to make a Trust Deed.

When he has done the Deed, he then appoints a trustee whose job is to take care of the property and assets so that they are used to benefit the beneficiaries. Beneficiaries are the people the Settlor wants to benefit from after his death.

Will –

The parties involved in making Will are Testator, executor, witnesses, and beneficiaries. Here, the Testator is the concerned individual who wants to create his Will.

However, after he has made the Will, he has to hand over the desired property and assets to the executor so that they are used in ways that benefit the beneficiaries. Witnesses are the people who act as proof, and beneficiaries are the people who would be benefited after the Testator’s death.

Parties involved in the making of a Trust

Settlor – A Settlor is an individual who wants to make a Trust and take care of his property and assets. He may also be referred to as a Trustor or Creator.

Trustee – A Trustee is the person whose job is to handle the Settlor’s property and assets as per his wishes and ensure that whichever is used benefits the beneficiaries.

Beneficiary – A Beneficiary is a person who would be benefited from Settlor’s property and assets after his death.

Parties involved in the making of a Will

Testator – A Testator is a person who wants to create a Will to take care of his property, assets, and children.

Executor – A Executor is someone whose job is to fulfill the Testator’s wishes. The property and assets are used to benefit the beneficiaries, and the concerned children get their guardians as selected by the Testator.

Witnesses – The process of making a Will requires the presence of witnesses who acts as proof.

Beneficiary – A Beneficiary is a person who would be benefited after the Testator’s death.

Probate

Trust – It does not require probate, meaning it typically does not require the legal system to approve a Trust. It is automatically done without having the need to have a Probate.

Will – One of the hallmark features of a Will is that it primarily requires a Probate. It is only after the probate a Will is recognized.

Guardian

Trust – It has no provision for selecting a guardian for the concerned individual’s sons.

Will – This is where a Will has the edge over the Trust. One of the best features of a Will is that it provides a provision for selecting a guardian for one’s child. It lets an individual decide who he wants to be the guardian of his kids after his death.

Expiry

Trust – The parties involved in a Trust are Settlor, trustee, and beneficiaries. If anyone among the mentioned parties dies, then the concerned Trust is considered to stay active for 21 years.

Will – Unlike Trusts, they generally do not expire no matter how old they are.

Conclusion

Due to various similarities, people mistake Trust and Will as synonyms, but both are considered to be very different. For example, a Trust is concerned with the handling of property and assets of an individual that becomes active the moment they are formed.

On the other hand, a Will is concerned with passing the ownership of property and assets along with an individual’s kids that become active after the concerned individual’s death.

Frequently Asked Questions (FAQs)

Q1. What is the purpose of a Will?

A Will’s sole purpose is to ensure that an individual’s property, assets, and children are treated in the same way that he wants. It means ensuring the property and assets are passed onto someone the individual wanted, and children get a guardian, the individual selected.

Q2. What is the purpose of Trust?

The purpose of a Trust is similar to the purpose of a Will. Except, a Trust only takes care of one’s property and assets, and it has no role in allocating a guardian to the children of the deceased.

Q3. What are the different parties involved in Trust and Will making?

The parties involved in Trust making this are Settlor, the trustee, and the beneficiary. At the same time, different parties involved in Will making are Testator, executor, witnesses, and beneficiaries.

Q4. What is the difference between Revocable and Irrevocable Trust?

The main difference between a Revocable and Irrevocable Trust is that the former can be edited while the latter is permanent.

Q5. What are the major differences between a Trust and a Will?

The former is known to become active the moment it takes place, while the latter is known to become active after the death of the Testator. Another significant difference between the two is that the former does not require probate, while the latter does.