What Is The Difference Between A Trust And A Will?
Last updated on March 14, 2025
The difference between a trust and a will in San Antonio, Texas, is that a will allows you to determine how you want assets to be distributed when you die, whereas a trust holds assets for you and can control that distribution. A trustee is in charge of making distributions from a trust, while an estate administrator – sometimes known as an estate executor – is responsible for carrying out the instructions in a will.
At the Law Office of Jon R. Disrud, you can meet with seasoned lawyer Jon R. Disrud. He has more than 30 years of experience to lean on when helping you decide if you need a trust or a will – or if you would like to use both estate planning documents together. He offers free initial consultations, so call our attorney today.
Why Does The Difference Between A Trust And A Will Matter?
The difference matters because these estate planning documents are fundamentally trying to accomplish slightly different things. There can be some significant benefits to using a trust, which gives you more control over what happens to your assets after you pass away.
For example, if you write a will, you can specify certain beneficiaries who are intended to receive specific assets or a portion of a financial account. However, if you put those same financial assets into a trust, you can also specify how they should be used. For instance, you can state that the trustee should not distribute any assets to the beneficiary until they are 25 or 30 years old, hoping they will make wise financial decisions at this age. You can also specify certain uses such as paying for college tuition or medical bills.
Moreover, a trust can be used to protect assets that may otherwise be lost. If you have an heir with special needs, a special needs trust can be used to ensure they do not have to spend down all of their inheritance before they qualify for government benefits. If you place money into an irrevocable trust before you pass away, it can lower the value of your estate, reducing potential estate taxes. This is also a tactic that can keep that money from creditors or divorce proceedings.
What Is Best: A Trust Or A Will?
Ultimately, it is often best to use both documents together. A basic will can be constructed to tell beneficiaries how to split up tangible assets, items with sentimental value, real estate and financial accounts.
However, by using a trust, you can take things a step further. This way, you still retain control over the money. As noted above, you can specify exactly when or how it should be used, which is not possible with a will. A will simply transfers the assets into someone else’s name, and they can use them as they wish.
Furthermore, you put assets into the trust before you pass away. With a will, the transfer only happens after your death. Distributions from a trust may also wait until your passing, but the trust holds those assets in advance.
Other Estate Planning Tools
The first thing to know about your estate planning options is that there are many different types of trusts, such as:
- Revocable living trusts
- Irrevocable living trusts
- Special needs trusts
- Spendthrift trusts
- Medicaid trusts
- Educational trusts
Beyond these, there may be other estate planning tools that you want to consider. One example is a payable on death (POD) account. This is a bank account that has a direct beneficiary designation already attached to it. This means that the beneficiary takes over as the account holder when you pass away. They can receive the funds much faster because they do not go through probate, and the designation cannot be challenged. Both a will and a trust could theoretically be challenged by beneficiaries, family members, creditors and others with legal standing.
What An Attorney In San Antonio Can Do For Your Will Or Trust
One of the best reasons to work with an attorney in San Antonio, Texas, is that they can help you weigh your options. They will consider the specific needs that you and your family members have. They will tell you about the various steps you need to take to create the appropriate documents. They can help you get everything filed properly so that you know your wishes will be honored. In many cases, they can also point out potential disputes or areas of conflict that can arise, as sometimes happens with estate planning. You can take certain steps to prevent these disputes and focus on the best interests of your family and beneficiaries.
If you are interested in setting up a free consultation with an experienced attorney, just use the online contact form or call 210-569-0581 today. Our team would be happy to talk with you about your options, learn more about what you want your estate plan to accomplish and discuss how trusts, wills, POD accounts and other estate planning tools can help you achieve these goals.