Indianapolis, IN estate planning attorney Thomas Steele talks about the difference between a Will and a Revocable Trust. He explains that one of the most common questions clients ask in estate planning concerns the difference between a will and a revocable trust. While both documents serve similar purposes—directing how assets are distributed at death, determining whether they pass outright or with restrictions, and designating who will carry out these wishes—they operate differently in practice.

In a will, the individual in charge of administering the estate is referred to as a personal representative, also known as an executor or administrator. In a trust, this role is performed by a trustee. The primary distinction lies in how assets are transferred at death. A last will and testament can only legally distribute assets through the probate process, which involves opening an estate in the decedent’s county of residence. For example, in Marion County, Indiana, a will would be submitted to the Marion County Probate Court, which grants the personal representative legal authority to collect assets, pay debts, communicate with creditors, and ultimately distribute property to the beneficiaries designated in the will. Without probate, a will has no legal effect.

By contrast, a properly funded revocable trust can transfer assets privately, outside of probate, according to the timeline established by the trustee. Proper funding requires that all assets ultimately pass through the trust, either by retitling property, investment accounts, or bank accounts in the name of the trust during the grantor’s lifetime, or by designating the trust as the beneficiary of certain financial accounts. This ensures that the trust holds legal authority over the assets either during life or at death, allowing for a private and streamlined transfer to the beneficiaries.