Wills and living trusts are both common estate-planning tools, but they serve different purposes. The right documents depend on a person’s assets, family circumstances, goals, and how those documents are properly completed and maintained.
This overview explains some general differences for California families. It is educational information, not legal advice or a recommendation that any particular person needs a specific document.
What a Will Can Do
A will records how a person wants property handled after death and can nominate people to carry out those wishes. Parents may also use a will to nominate a guardian for minor children. Guardian nominations remain subject to court review and approval based on the child’s best interests.
A will generally becomes effective after death and is commonly handled through the probate process. Whether probate is required—and the time and expense involved—depends on the assets, their ownership, beneficiary designations, estate value, and other circumstances.
What a Revocable Living Trust Can Do
A revocable living trust can provide instructions for managing and distributing assets placed in the trust. The person creating the trust usually retains control while able to manage their affairs and names a successor trustee to act when needed.
When properly created and funded, a trust may allow certain assets to pass outside probate. A trust does not automatically control everything a person owns. Assets generally must be transferred to the trust or otherwise coordinated with the overall plan. Some assets may pass through beneficiary designations, joint ownership, or other arrangements.
Why Some Plans Include Both
Some estate plans include both a revocable living trust and a pour-over will. The trust may serve as the primary document for assets placed in it, while the will may address remaining property and guardian nominations. Using both is not automatically right for everyone; the appropriate structure depends on the individual situation.
Other Common Planning Documents
- A durable power of attorney for specified financial matters
- An advance health care directive documenting health care preferences and decision-makers
- Deeds, beneficiary designations, and account titling coordinated with the plan
Questions Worth Considering
- What property do you own, and how is it titled?
- Who should manage financial or health care matters if you cannot?
- Who should receive your property?
- Do you have minor children or dependents who need additional planning?
- Have major family, financial, or property changes occurred since your documents were signed?
Estate-planning documents should be based on accurate information and completed with the required formalities. Trust-based plans also require attention to funding and asset coordination. Laws and personal circumstances can change, so periodic review may be appropriate.
How Affordable Estate Planning Services Helps
Affordable Estate Planning Services, LLC provides non-attorney document-preparation services. We help clients organize information and prepare documents based on their selected plan. We do not provide legal advice. Attorney review or oversight applies only when specifically arranged and disclosed. Questions requiring legal judgment should be discussed with a licensed attorney.
To learn more about our document-preparation process, call 916-701-3844 or visit myaffordableestateplan.com.
