What Happens When a Will and a Revocable Trust Conflict?

Updated August 15, 2024

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A will and a trust are separate legal documents that typically share a common goal of facilitating a unified estate plan. Neither supersedes the other—wills control the estate, whereas trusts control the trust estate. Ideally, they work in tandem because they are separate documents. But they sometimes run into conflict with each other—either accidentally or intentionally. Here is a look at the differences between these two documents and what happens if they do conflict.

Key Takeaways

Wills and living trusts are part of a comprehensive estate plan.
A revocable trust is a living trust set up and funded by an individual who gives a trustee the responsibility of managing and distributing the assets for the benefit of the named beneficiaries.
A will is a document that highlights the wishes of an individual after they die.
Wills have no power to decide who receives a living trust's assets, such as cash, equities, bonds, real estate, and jewelry.
Individuals who have trusts should also have wills since trusts only provide details on what to do with named assets.

Revocable Trust vs. a Will

Revocable trusts and wills are estate planning tools that individuals establish during their lifetime. They are designed to manage someone's assets, whether that's money, real estate, artwork, or other valuables. They may be used for the same purpose in💙 that they are set up to transfer assets to an individual's heirs. Both can be revised at any point during the creator's lifetime provided that they remain mentally sound. But there are some inherent differenc꧋es between the two.

A 澳洲幸运5官方开奖结果体彩网:revocable trust is a type of 澳洲幸运5官方开奖结果体彩网:living trust set up when someone (the grantor) is still alive. Once it is signed it goes into effect, giving a trustee immediate responsibility for managing the grantor's assets for the benefit of the heir(s) or beneficiary. (Often, the grantor acts as their own trustee during their lifetime.) Unlike other living trusts, a revocable trust can be altered or canceled by the grantor at any time. Once the grantor dies, however, this trust be💛comes irrevocable. At that time, the trustee is required to manage and/or distribute the assets as per the grantor's wishes.

Wills, on the other hand, are legally enforceable documents that provide directions on how an individual wishes to distribute their wealth and assets among their named heirs only after they die. Wills m൩ay also name guardians for any ꦡminor children. Like trusts, wills also can be changed at any time by the individual whose will it is.

Fast Fact

Since revocable trusts become operative before an individual's will takes effect at death, a trust takes precedence over a will. Knowing this can be helpful when there are discrepancies between the two.

A Trust Is a Separate Entity

When a person dies, their will takes effect in a legal proceeding called probate, which aims to distribute the deceased individual's property, according to the terms dictated by their will. Prob𝓀ate can be a long and costly process that 🍒determines whether a will is valid.

澳洲幸运5官方开奖结果体彩网:The same isn't true for trusts, which is one of the key benefits of a revocable trust. A trust is considered a separate legal entity for the purpose of managing and distributing assets according to the 澳洲幸运5官方开奖结果体彩网:grantor's wishes.

The assets named in a revocable trust do not pass through the probate process along with the deceased's personal assets. That's because assets named in a trust aren't legally owned by the deceased person. In other words, the will has no authority over a trust's assets, which may include cash, equities, bonds, real estate, au�ﷺ�tomobiles, jewelry, artwork, and other tangible items.

Tip

If you're going to have a trust, make sure you fund it. It won't be worth anything if you don't transfer any assets into it.

Do You Need Both a Will and a Trust?

Since a will and a trust are two separate entities, you can have both.🌳 But should you?

Most people think that because they have a trust, they don't need to write a will. That's not true. If you do establish a living trust of any kind, including a revocable trust, you should also have a will. A trust only contains the assets that you transfer over to be handled by the trustee. It doesn't actual💝ly include all of your assets.

Wills can also take care of issues that your trust can't—notably, guardianship of your minor children and instructions about what happens to any pets you may have. You can also outline other directives, such as funeral arrangements, to take place after you die.

Important

Intestate is the term used to describe the situation when someone dies without leaving a will. In this case, a deceased individual's assets are turned over to a probate court, which determines how they are distributed.

Revocable Trust vs. Will Example

Let's assume a divorced patriarch named Calvin has two children, Donna and Maxine. Calvin decides to place his home into a living trust which states thatꦅ both his kids are to inherit that house. Several years later, he remarries.

Just before he dies, Calvin executes a new will that purports to leave the property to his new wife, Paula. However, he fails to amend the trust, which he would need to do 𓃲in order to make the transfer to his wife effective. Consequently, that home becomes the property of Donna and Maxine.

This can be a confusing subject to many individuals who write wills and expect the stipulations to be carried out without incident. Therefore, it's vital to remember that a revocable trust is a separate entity and does not follow the provisions of an individual's will, upon their death. It's prudent to seek the advice of a trust 澳洲幸运5官方开奖结果体彩网:and estate planning attorney, to make sure proceedings go as planned.

What Is the Difference Between a Will and a Trust?

A will is a legal document that is enforceable after an individual dies. It includes directives on how assets and other personal effects are to be distributed. Wills also include other instructions, such as what to do with minor children ꧑and pets.

Trusts, on the other hand, are legal entities that must be funded by the grantor, the individual who sets up the trust. A trustee, named in the trust document, has the responsibility of handling, managing, and distributing assets within the trust even wh🔯ile the gr🍸antor is alive. A revocable trust can be changed or canceled only when the grantor is alive but becomes irrevocable after their death.

Does a Will Supersede a Trust?

Wills control the estate. Trusts control the trust estate, the assets that are placed within their ownership. These two types of documents do not overlap and therefore cannot supersede each other. However, if th🥂ey conflict, a trust will usually prevail over a will after an individual dies because the assets in the trust are legally owned by the trust, not the estate.

What Supersedes a Will?

There is a document called a codicil that often trumps a will. A codicil is oft𓆏en supplementary to a will and is commonl💝y used to amend and/or replace the original will drafted by an individual. In other cases, it may serve as an alternative to a will.

What's Better, a Trust or a Will?

Wills often have to go through the probate process, which can be long and costly. One way to avoid this is to set up a trust. Keep in mind, though, that trusts often don't include all of your assets, especially if you acquire things after it is set up. You can set up directives for things like the guardianship of your minor children and pets by drafting a will. Although it's always a good idea to have a will, you may want to consider having a trust as well.

The Bottom Line

People often believe that trusts are only for the ultra-rich. But that isn't necessarily true. In fact, they can be very useful estate planning tools for anyone. If you're considering establishing a trust (perhaps for your children or your grandchildren), make sure you also draft a will.

While the trust will only take care of the assets w꧋ith which you fund it, your will should be more comprehensive by providing details on how all of your other assets should be dealt with after you die. It can be helpful to consult an estate planning professional to weigh out your options.

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