Wills and Trusts, What’s the Difference?
Wills and trusts are often discussed together, but they are not interchangeable.
Wills and trusts are often discussed together, but they are not interchangeable.
A will is a legal document dealing principally with what should happen to a person’s estate after death. A trust is a legal arrangement under which trustees hold and manage assets for beneficiaries according to particular terms.
A trust can be created by a will, but trusts can also exist during somebody’s lifetime. That is why asking “should I have a will or a trust?” can be the wrong starting question.
A will speaks to what happens after death
A will can identify beneficiaries, appoint executors and, where relevant, record wishes about guardians for children.
After death, executors administer the estate: identifying assets and liabilities, dealing with probate and tax requirements where relevant, paying debts and distributing the estate according to the will.
If there is no valid will, intestacy rules may determine who inherits the estate governed by those rules.
A trust is about how particular assets are held and managed
A trust separates roles.
Trustees hold and manage trust property under the trust terms. Beneficiaries have the rights or potential benefits provided by that arrangement.
The trust may last for a period rather than simply transferring an asset outright to a beneficiary.
That can be relevant in many different circumstances, but it also creates legal, administrative and potentially tax consequences.
A will can create a trust
This is where the concepts overlap.
A will may provide for assets to be held on trust after death rather than passing outright to a beneficiary immediately. This is commonly described as a will trust.
For example, arrangements may be considered where beneficiaries are children or where family circumstances are more complicated.
That does not mean a will trust is automatically appropriate in those situations. The wording and consequences require professional advice.
A lifetime trust is different again
Some trusts are established while the person creating them is alive.
Transferring assets into a lifetime trust can have immediate consequences for ownership, control, taxation and administration.
It should not be treated as a more sophisticated version of making a will.
If somebody is considering moving a home, investments or substantial savings into trust during their lifetime, specialist advice is particularly important.
Neither document automatically controls everything
A will does not necessarily determine what happens to every asset. Joint-tenancy property, pensions and other arrangements may operate under separate rules.
Likewise, a trust controls only the assets that are actually subject to that trust.
Good planning therefore begins with an accurate picture of what somebody owns, how it is owned and what existing arrangements already apply.
Avoid choosing between labels
The useful conversation with a solicitor is not “I want a trust instead of a will.”
Explain the family circumstances, assets, intended beneficiaries and what you want to happen.
A professionally qualified adviser can then explain whether a straightforward will, trust provisions, lifetime arrangements or something else is appropriate. MH360’s role is to help you understand the questions, not prescribe the legal answer.
Last reviewed
5 September 2026
Important legal informationThis guide provides general information only and does not constitute legal advice. It is not intended to recommend any particular legal arrangement, course of action or solution. Wills, inheritance, trusts, powers of attorney, mental capacity and related matters can have significant legal and financial consequences, and the appropriate approach will depend on individual circumstances. Professionally qualified legal advice should be sought before making, changing or acting upon important legal arrangements or decisions.