Trust vs. Will: What’s the Difference and Which Do You Need?
Estate planning is one of the most important steps you can take to protect your loved ones and your legacy. At MMCCU, we’re committed to helping our members make confident, informed decisions about their financial future. One of the most common questions we hear is: What’s the difference between a trust and a will?
Both are essential tools in estate planning, but they serve different purposes. Let’s break it down:
What Is a Will?
A will is a legal document that outlines your wishes regarding the distribution of your assets, the care of any minor children, and other personal matters after your death.
Key features of a will:
- Only goes into effect after death
- May require probate (court process)
- Can name guardians for minor children
- Public record during probate
What Is a Trust?
A trust is a legal arrangement where a trustee manages assets on behalf of beneficiaries. Trusts can go into effect while you’re still living and often allow your estate to avoid probate.
Key features of a trust:
- Goes into effect immediately once funded
- Can help avoid probate and maintain privacy
- Continues to manage assets if you become incapacitated
- Gives you more control over when and how assets are distributed
Do I Need a Will or a Trust?
In many cases, having both a will and a trust offers the best protection. A will ensures your wishes are legally documented, while a trust allows for more flexible and private management of your assets. The right approach depends on your personal situation, financial goals, and family needs.
MMCCU Has Partnered with Trust & Will
To make estate planning easier and more accessible, MMCCU has partnered with Trust & Will, the leader in online estate planning. With over 500,000 families served, Trust & Will offers a simple and affordable way to create your estate plan online—from wills and trusts to guardianships and more.
Through this partnership, MMCCU members receive a 10% discount on estate planning services through Trust & Will. Together, we’re making it easier than ever to protect your legacy and give your family peace of mind.
Get started with your estate plan today.
Need Help Getting Started?
While MMCCU does not offer legal advice, our team is here to support your financial wellness. Contact us with questions or visit our Trust & Will partner page to begin your estate planning journey.
MMCCU – Helping You Plan Today for Tomorrow
Call us at (715) 387-8686 or visit mmccu.com for more information.