What’s the Difference Between a Will and a Trust?
- Dave Cottrell, CPA
- Feb 27
- 2 min read
Wills and trusts are two of the most common estate planning tools, but many people don’t fully understand the difference. Choosing the right one (or both) can make a major impact on how your assets are managed, protected, and passed on.
At MCAC, we help Alaska business owners and families understand their options and work with legal professionals to create clear, effective plans. Here’s a quick breakdown of wills vs. trusts and when each makes sense.
1️⃣ What Is a Will?
A will is a legal document that outlines how your property and responsibilities should be handled after your death. It names beneficiaries, guardians for minor children, and an executor to carry out your wishes.
2️⃣ What Is a Trust?
A trust is a legal entity that holds assets for beneficiaries. It takes effect as soon as it’s created and can manage or transfer assets during your lifetime or after death, often bypassing probate entirely.
3️⃣ Key Differences Between the Two
- Wills go through probate court; trusts often avoid it
- Wills are public; trusts can remain private
- Wills are simpler and cheaper to set up; trusts offer more control and flexibility
4️⃣ When You Might Need Both
Many people use a combination of both tools, a will for general instructions and personal items, and a trust for larger assets, businesses, or complex family dynamics.
5️⃣ How MCAC Helps
We help clarify what fits your situation, explain tax and business impacts, and collaborate with estate attorneys to make sure your plan is complete and actionable.
Estate planning isn’t one-size-fits-all. Whether you’re updating an old plan or starting from scratch, MCAC can help you understand your options and move forward with confidence.
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