When thinking about the future, one of the most important decisions you’ll make is how to protect your assets and provide for the people you care about. Estate planning gives you the legal tools to do just that. But should you create a will, a trust, or both? While both serve a similar purpose, making sure your property ends up in the right hands,they work in different ways. Understanding the differences can help you build a plan that fits your needs, avoids unnecessary delays, and reflects your values.

What Is a Will?

A will is a written document that outlines who should receive your property after you die. It also allows you to name someone you trust to carry out your wishes. This person is known as the personal representative or executor. If you have minor children, a will lets you nominate a guardian to care for them.

A will only takes effect after your death and must go through probate. Probate is a legal process overseen by the court to validate the will, settle debts, and distribute your assets.

Benefits of a will:

Typically quicker and more affordable to create than a trust
Allows you to name guardians for minor children
Suitable for simpler estates

Limitations of a will:

Must go through probate, which can take months and become public
Offers limited control over how and when assets are distributed
Doesn’t help manage your affairs if you become incapacitated

What Is a Trust?

A trust is a legal arrangement that holds assets for your benefit during your lifetime and for the benefit of others after your death. You can serve as the trustee during your life, and name someone else to step in if you pass away or become unable to manage your affairs.

One of the main reasons people in Minnesota create a trust is to avoid probate. A trust lets your loved ones access and distribute your assets more quickly and privately.

To ensure your trust works effectively, you’ll typically also need a pour-over will. This safety net automatically transfers any assets not already in your trust, such as forgotten accounts or newly acquired property, into the trust after your death. This way, all your assets follow the trust’s distribution plan.

Advantages of a trust:

Bypasses probate, saving time and reducing stress for your family
Offers privacy—no court filings or public records
Can include detailed instructions about how and when assets should be used
Allows someone to step in and manage finances during your lifetime if needed

Potential drawbacks:

More expensive to set up
Requires effort to properly fund and maintain
May be more than you need if you have few assets and a straightforward plan
If not funded correctly, it may not be effective at avoiding probate

Cost Comparison: Will vs. Trust

Cost is often a deciding factor for many families. A will is usually less expensive to prepare initially. But that upfront savings can be offset by the costs of probate later, especially if there are court fees, legal expenses, or disputes.

Creating a trust involves more up-front work:

The legal fees are typically higher
You’ll need to retitle assets into the trust (such as real estate or bank accounts)

Still, many families find that a trust pays off in the long run by avoiding probate and reducing administrative delays after death.

Which Offers More Flexibility?

Wills are effective at laying out basic wishes, but they’re limited when it comes to long-term planning. You can update a will by adding a codicil or drafting a new one, but the document doesn’t allow for much control over how funds are used once you’ve passed away.

Trusts offer more flexibility, especially for families with:

Loved ones who need financial oversight
Charitable giving goals
Plans to distribute assets in stages rather than all at once

A trust can also take effect while you’re still living, making it a useful tool if you become ill or incapacitated.

Aligning with Your Family’s Needs and Goals

Your estate plan should reflect your personal goals and your family’s unique situation.

For young families, a will may be the first step. Nominating a guardian is often the top concern, and probate can be a relatively straightforward process.
For blended or same-sex families, business owners, or those with property in multiple states, a trust can provide more control and help avoid conflict.
For older adults, trusts can also help manage assets in the event of cognitive decline or chronic illness.

In many cases, people use both. A will can serve as a backup to your trust and cover anything not transferred into it.

Making an Informed Choice

Wills and trusts both play important roles in estate planning, but they serve different purposes and offer different benefits. The right fit depends on your goals, your assets, and your family’s needs now and in the future.

I help individuals and families in Minnesota create clear, customized estate plans that reflect what matters most to them. If you’re ready to start planning or want a second look at your current documents, contact Gratz Law & Mediation, PLLC, today to schedule a confidential consultation.