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When it comes to preparing for the future, few topics are as important—or as misunderstood—as wills and trusts. Whether you’re caring for aging parents, navigating Alzheimer’s and dementia, or simply want to avoid unnecessary conflict after you’re gone, having a clear estate plan is one of the greatest gifts you can give your loved ones.
But where do you start? And what’s the difference between a will and a trust?
At SageVault, we believe you deserve simple, thoughtful guidance to make confident choices. Here’s what you need to know.
What Is a Will?
A will is a legal document that outlines your wishes after death. It designates:
- Who will receive your assets
- Who will care for minor children (guardianship)
- Who will oversee your estate (executor)
A will must go through probate, a court-supervised process that validates the will and authorizes the executor to distribute the estate. This process is often public and time-consuming—taking an average of 6 to 16 months in the U.S., depending on complexity and location.
✅ Pros:
-
- Simple and affordable to create
- Designates guardians for minor children
- Allows you to name an executor
⚠️ Cons:
- Requires probate
- Becomes public record
- Doesn’t help manage assets if you become incapacitated
What Is a Trust?
A trust is a legal entity that holds and manages your assets, allowing a third party (the trustee) to administer them according to your instructions. The most common option for families is a revocable living trust, which goes into effect during your lifetime and can be changed or revoked.
Trusts are particularly useful if you’re planning ahead for medical decline or cognitive changes like navigating Alzheimer’s and dementia—since they can support incapacity planning and ensure continuity of care and financial management.
✅ Pros:
-
- Avoids probate (saves time and court costs)
- Can manage assets during incapacity
- Keeps financial matters private
- Offers more control over timing of asset distribution
- May help reduce estate taxes for larger estates
⚠️ Cons:
- More expensive and complex to set up
- Requires retitling assets into the trust
- Still recommended to have a will as a backup (“pour-over will”)
Will vs Trust: Quick Comparison
|
Feature |
Will |
Trust |
|
Takes effect |
After death |
Immediately (while you’re alive) |
|
Covers incapacity |
❌ No |
✅ Yes |
|
Avoids probate |
❌ No |
✅ Yes |
|
Public or private |
Public |
Private |
|
Cost to set up |
Lower ($200–$1,000) |
Higher ($2,500-$5,000+) |
|
Ongoing management |
None |
Ongoing updates and asset transfer |
Which One Do You Need?
In many cases, the right answer is: both.
- A will is essential to name guardians for minor children and handle anything outside your trust.
- A trust helps you stay out of court, protect privacy, and plan for long-term care or incapacity.
If your estate is modest and uncomplicated, a will might suffice. But if you:
- Own property in multiple states
- Anticipate medical decline
- Have a blended family or unique distribution wishes, then a trust offers more flexibility and peace of mind.
A 2023 study found that only 32% of Americans have a will, and just 1 in 10 have a trust—even though 71% say estate planning is important.
Wills vs Trusts: Final Thought
A will helps you say what you want. A trust helps ensure how and when it happens—with fewer delays, fewer legal headaches, and more peace of mind.
Whether you’re facing a diagnosis, thinking ahead, or caring for aging parents, now is the time to act. You’re not just preparing documents—you’re protecting your people.
Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as legal, financial, or medical advice. SageVault does not provide legal services and is not a law firm. For advice specific to your situation, please consult with a qualified attorney, financial advisor, or healthcare professional.
