News & Resources: Blog

What is a Trust vs a Will?

Published: January 28, 2019
Establish Your Trust with Scott Bloom Law


Both trusts and wills are used in estate planning. Both are used to name your beneficiaries and which beneficiaries will receive your assets after you are gone.

The paths your beneficiaries will take with a trust and a will are, however, quite different.


A living trust (revocable or irrevocable) is not subject to probate. A will is subject to probate. This is the main difference between the two estate planning tools.

  • While attorney’s fees for setting up a trust are often more than a will, having your assets in a living trust can speed up the time it will take for your beneficiaries to actually receive assets you want them to inherit.
  • Fees to execute the trust’s terms are minimal, if any. The successor trustee will simply fulfill the terms of the trust and make the asset transfers happen to the beneficiaries.
  • Probate of a will can last at least one year.
  • Once probate begins, your estate will incur attorney’s fees and other expenses, such as asset appraisal fees. The probate court may set a cap on the fees your estate will incur during probate.


Your revocable or irrevocable trust is active once you’ve signed it. A will takes effect upon your death.

Two examples:

  1. Your trust designates your son as a co- trustee of your trust. If you are no longer able to make decisions about finances–let’s say you have a chronic illness or an accident–your son can immediately and legally continue to take the financial reins–without going to court or any other entity to give your son the power to do this.
  2. If you have a disabled child a trust can be set up to fund and to oversee their care. You and your successor trustee(s) can be legally empowered to make decisions about the child’s well-being, education and care throughout your child’s entire lifetime.


Since a living trust isn’t subject to probate court, it is a private matter between the grantor, the trustee and the beneficiaries. No one outside of those mentioned in the trust can find out the value of your assets, how much was given to your beneficiaries, or any other details.

What happens in a probate court is public record.

Contact Scott D. Bloom law for more information about using a trust in your estate plan.


To schedule your free consultation,
email us, or call 1-215-364-1111
or 1-855-992-6337 (Toll Free)

CLIENT Testimonial

It is important to plan your estate to ensure that your assets, interests, and those you love will be protected after your death. However, without proper guidance and advice from a qualified estate planning attorney, many individuals make costly mistakes. Beyond undermining your intent and diminishing your financial legacy, poor planning can create additional stress to your heirs in their time of grief.

Six common errors frequently happen during the estate planning process. These mistakes often occur because the complete financial picture was not fully considered. It is easiest to avoid estate planning mishaps by knowing what they are before you begin or looking for these errors when reviewing and updating your plan.

Financial procrastination causes problems. While examining your mortality and making end-of-life preparations is not a particularly fun activity, try viewing it as helping and enhancing your loved ones' future lives while creating a sense of peace during your own. 

The need to protect your finances using wills, trusts, and power of attorney (POA) documents is not solely the domain of the elderly. Putting off the drafting of legal documents necessary to protect yourself and your inheritors can lead to disastrous outcomes.

By far, failing to create an estate plan is the most common mistake. Even if you do not have a lot of money, you need a will to protect any minor children you have by naming their guardians. Your will also ensures your asset distribution to heirs is carried out according to your intentions when you die and names a representative to handle debt obligations, final taxes, and other estate administrative duties. Dying without a will or "intestate" can lead to dire consequences.

Outdated wills, forms, and POAs create problems. If you made a will twenty years ago and have not reviewed and updated its contents, chances are many of the details no longer reflect current assets or beneficiaries. Estate planning is not a "set it and forget it" proposition. Reviewing estate planning documents and beneficiary forms every two years is generally adequate, barring a major life change such as divorce, birth, death, remarriage, or relocation to another state.

Beneficiaries without coordination can create expensive oversight. Beneficiary forms for retirement accounts like 401(k)s and IRAs, annuities, and life insurance policies may constitute a significant portion of your estate's assets. These beneficiary forms are legally binding and will supersede the contents of your will. Failure to update beneficiary forms can lead to an ex-spouse receiving assets that preferably would go to your heirs. Routine checks of all beneficiary designations are best practices for estate planning.

Failing to title trust assets properly can lead to probate. While not everyone requires a trust, those who do must carefully retitle their assets into the name of the trust. Forgetting to add more recently purchased property or opening a new account requires you to title them into the trust to receive trust benefits. Whether real estate, cash, mutual funds, or stocks, if you fail to move the asset into the trust, they become subject to the probate court, possible tax consequences (depending on the trust type), and a public record of these assets.

Life insurance can trigger estate tax. Life insurance can provide heirs with liquidity without the sale of assets and tax consequences when handled correctly. However, if a wealthy individual dies while maintaining ownership of their life insurance policy, they may inadvertently create a tax event for their heirs. Although life insurance death benefits are not subject to state or federal income taxes, any "incident" of ownership by the decedent can create an inheritance tax.

An estate planning attorney can help shelter life insurance proceeds from high-value estates by gifting the policy to an Irrevocable Life Insurance Trust (ILIT) or draft a new trust to purchase a new policy where the trust is the owner and beneficiary. A policy owned by the trust does not create a taxable situation to death benefits. Your attorney's careful structuring of this trust type is complex but can provide proper protection.

Joint ownership of assets with your children can lead to disastrous consequences. Naming your children as co-owners of assets, even digital, permits their creditors to access your money. The better way to address the situation is to give your adult child power of attorney and assign them as a beneficiary to a payable on death bank or brokerage account. This tactic permits them to access your funds if required during your lifetime. However, it keeps your assets from your child's estate and away from their potential creditors.

Ultimately the biggest error you can make is not finding the right estate planning attorney to guide you. This specialized attorney receives training on avoiding probate, tax implications, and asset protection if you require long-term care. Proper planning with the right guidance will help you avoid costly estate planning mistakes and protect your family's future financial well-being.

If you have questions or would like to discuss your legal matters, please do not hesitate to contact our office at 215-364-1111 to schedule a consultation.

- Estate Planning Mistakes to Avoid

JOIN Our Newsletter

Schedule Your Free Consultation

At Scott Bloom Law, we strive to provide excellent client service and will contact you as soon as possible. Send us an email, or call us to speak to someone directly.

CLIENT Testimonial

Scott Bloom pays attention to details .. he's very caring and helpful for the client!! .. Knowledge 100% +
- Tony E., Southhampton, Pennsylvania

JOIN Our Newsletter