When it comes to estate planning, most people think of wills and trusts — but few understand the difference. Both tools help ensure your assets go where you want them to after you’re gone, but they operate in very different ways. Knowing how they compare can help you make the right choice for your situation.
What’s a Will?
A will is a legally binding document that outlines who will oversee the administration (the “Personal Representative”) and who should receive your property after you die (the “beneficiaries”). It can also nominate guardians for minor children.
Pros of a Will:
- Simple and inexpensive to create.
- Allows you to name guardians for minor children.
- Easy to update as your situation changes.
- Waives the probate bond, which is costly and cumbersome.
Cons of a Will:
- Goes through probate, a court-supervised process that can be slow and costly.
- In Oregon, even a simple estate commonly takes a year to get through probate, and cost upwards of $5,000 in attorney fees.
- Becomes public record, reducing privacy.
- This is less than ideal when family dynamics are strained.
- Offers no protection if you become incapacitated. It is only effective upon death.
- No flexibility in how gifts are distributed. It will be a one time distribution at the close of probate.
What’s a Trust?
A revocable trust — also known as a revocable living trust — is a legal arrangement in which a person (called the settlor, trustor, or grantor) places assets into a trust and retains the right to change, amend, or revoke the trust during their lifetime. A revocable living trust is the most common type for estate planning purposes.
Pros of a Trust:
- Avoids probate, saving time and court fees.
- Keeps your affairs private.
- Provides continuity in managing assets if you become incapacitated.
- Offers more control over when and how assets are distributed.
- Offers flexibility in planning for blended families, special needs beneficiaries and minor children.
Cons of a Trust:
- More expensive to set up.
- Trust documents are longer, and can be harder to understand.
- Requires funding — meaning you must transfer title of assets into the trust.
- May be overkill for smaller estates.
Will vs. Trust: Quick Comparison
Which One Should You Choose?
- Start with a will if your estate is simple, your budget is limited, or you mainly want to name guardians and outline basic wishes.
- Consider a trust if you want to avoid probate, maintain privacy, plan for incapacity, or control how assets are distributed over time.
Need Help Choosing the Right Plan?
Estate planning isn’t one-size-fits-all. If you’re unsure which option fits your needs, an estate planning attorney can help you decide and tailor the right approach for your goals and assets. Patricia Clements is an estate planning attorney in Lake Oswego, Oregon. She offers a courtesy consultation at no charge to discuss clients’ needs.
Our thanks to community partner Patricia Clements for helping our clients through the dos and don’ts of estate planning.
Have questions? Reach out to Patricia directly at VF Law, (971) 441-0700, patricia.clements@vf-law.com or learn more here.
