• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Parman & Easterday

Oklahoma Estate Planning Attorneys

Call Now: (405) 843-6100 |
(918) 615-2700

Attend an Education Program-Oklahoma City Area Attend An Education Program in the Tulsa Area
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • What Our Clients Say
  • Estate Planning
    • Asset Protection
    • Business Succession Planning
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • IRA and Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Powers of Attorney
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration and Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law
    • Emergency Medicaid
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • Asset Protection Worksheet
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Edmond Elder Law
        • Oklahoma City Elder Law
        • Overland Park Elder Law
        • Yukon Elder Law
      • Medicaid
      • Nursing Home Resources
    • Estate Planning
      • An Overview of Estate and Gift Taxes
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Alzheimer’s FAQs
      • Asset Protection Planning
      • Estate Planning
      • Elder Law
      • Frequently Asked Questions for Families Without an Estate Plan
      • Inheritance Planning for Minors
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid Planning
      • Nursing Home Asset Protection
      • Probate
      • Trust Administration
      • Trust Administration & Probate
      • Wills and Trusts
    • Newsletters
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • Probate Checklist
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
    • Probate Resources
      • Midwest City Probate
      • Moore Probate
      • Oklahoma City Probate
      • Overland Park Probate
    • Published Books
    • Pre Consultation Form
  • Communities We Serve
    • Edmond
    • Midwest City
    • Moore
    • Norman
    • Oklahoma City
    • Yukon
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact Us
Home » Guardianship » Trust vs. Will: Understanding the Difference

Trust vs. Will: Understanding the Difference

August 4, 2010 by Larry Parman, Attorney at Law

In the estate planning world, a Revocable Living Trust and a Last Will and Testament are the two most common documents used to settle estate affairs and pass property and financial assets to beneficiaries. Both offer the ability to name your heirs as well as someone to oversee your estate, and give you the capability of dividing your assets among those you love.

But there are several ways these two documents are different:

Life and Death

A Last Will and Testament, the most commonly known estate planning device, is used to name a person’s final wishes for his or her estate and goes into effect upon the author’s death. This means that no part of the Will can be carried out before the death of the Will maker.

A Revocable Living Trust, on the other hand, is executed while you are still living. It provides benefits to both the Trust maker (known as the Trustor) and his or her beneficiaries. Upon the Trustor’s death, the Trust can be used to settle the estate much like a Will.

Title

With a Will, all assets remain titled in your name until they are transferred to your heirs upon your death. But with a Living Trust, the assets are held in the name of the Trust, making the transfer of property a little bit easier because those assets are not subject to probate.

Probate

All Wills must endure a Probate to pay off debts, court costs and taxes and eventually pass property to beneficiaries. The type of probate required – a full probate or shorter, summary version – depends on the type and value of assets owned.

A Trust can usually avoid probate. To avoid probate, you should maintain your Trust and ensure that it is fully funded. In other words, your assets should be titled in the name of the Trust. If even one piece of your property is not included in your Trust, that property must face probate to either be funded into your trust with a Pour Over Will or to be probated by state law if you have not created a Will.

Taxes

A Revocable Living Trust can often be used to lighten the burden of estate taxes. This is because property will already be funded into the name of your Trust and therefore benefit from the tax planning language in the Trust document. Wills may include tax planning language as well, but the benefit requires a probate (or two if your spouse has the same plan). And, using joint tenancy can destroy the tax language in the Will. Therefore, Trusts are a better vehicle for minimizing estate taxes.

Disability

Because a Trust is executed while you’re still alive, it can contain provisions to protect you and your estate in the event that you become disabled or incapacitated. A Will, on the other hand, cannot be executed until your death so it cannot provide any protection for disability.

Larry Parman
Attorney at Law

  • Author
  • Recent Posts
Larry Parman, Attorney at Law
Larry Parman, Attorney at Law
Founder and Owner at Parman & Easterday
After helping his own family deal with a lengthy probate and the IRS following his father’s untimely death in a farm accident, Larry Parman made a decision to help families create effective estate plans designed to reduce taxes, minimize legal interference with the transfer of assets to one’s heirs, and protect his clients’ assets from predators and creditors.
Larry Parman, Attorney at Law
Latest posts by Larry Parman, Attorney at Law (see all)
  • Estate Administration 101 - February 2, 2023
  • Why Do You Need an Elder Law Attorney? - January 31, 2023
  • Inheritance Planning for Blended Families - January 26, 2023

Filed Under: Guardianship Tagged With: 401K, Financial Planning

Other Articles You May Find Useful

incapacity planning
Take Proactive Steps to Prevent a Guardianship
Parman & Easterday
Estate Planning For Domestic Partners
Overland Park estate planning attorney
Are Your Assets In Harm’s Way?
overland park probate attorneys
Understanding Guardianship Proceedings in Probate Court
Parman & Easterday
How Does a Court Choose a Guardian or Conservator?
Parman & Easterday
Guardians, Conservators, and More – What Does a Guardian/Conservator do?

Primary Sidebar

Parman & Easterday, LLP

DOWNLOAD OUR FREE ESTATE PLANNING CHECKLIST

SUBSCRIBE TO OUR BLOG

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Where We Are

OKLAHOMA CITY, OK
13913 Quail Pointe Drive, Suite B
Oklahoma City, OK 73134
Phone: (405) 843-6100
Fax: (405) 917-7018

MAP

parman_sidbr_map

Where We Are

TULSA, OK
Memorial Place 7633 E. 63rd Place
Tulsa, OK 74133
Phone: (918) 615-2700

MAP

parman_sidbr_map

Office Hours

Monday9:00 AM - 5:30 PM
Tuesday9:00 AM - 5:30 PM
Wednesday9:00 AM - 5:30 PM
Thursday9:00 AM - 5:30 PM
Friday9:00 AM - 12:00 PM

Footer

footer-logo

The information on this Oklahoma Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Oklahoma City Estate Planning Attorneys at Parman & Easterday offer estate planning services in the Oklahoma City, Oklahoma and surrounding areas. Contact us for help today.

Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys


© 2023 American Academy of Estate Planning Attorneys, Inc.
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube