Wills vs. Trusts in Tennessee
Planning for the future means making sure your wishes are honored and your loved ones are taken care of after you're gone. Two of the most common estate planning tools in Tennessee are wills and trusts. While both serve important functions, they operate in different ways and offer unique advantages depending on your goals.
Here’s a breakdown of the key similarities and differences between wills and trusts in Tennessee—and how to decide which option (or combination of both) is right for you.
What Is a Will?
A will is a legal document that outlines your wishes for how your assets should be distributed after your death. You can also name a guardian for minor children and appoint an executor to carry out your instructions.
Key Features of a Will in Tennessee:
Goes through probate: A will must be submitted to the local probate court in the county where you lived.
Public record: Because it’s processed through the court, your will becomes part of the public record.
Takes effect after death: A will has no legal power until you pass away.
Can name guardians for children: A will is the only way under Tennessee law to name a legal guardian for minor children.
Affordable: Wills are often less expensive to prepare than trusts, especially for smaller estates.
What Is a Trust?
A trust is a legal arrangement in which one person (the trustee) holds and manages assets for the benefit of another (the beneficiary). The most common type used in estate planning is a revocable living trust, which can be changed during your lifetime.
Key Features of a Trust in Tennessee:
Avoids probate: Assets placed in a trust don’t go through probate, allowing for a faster and more private distribution. They avoid probate because the assets are no longer the property of the grantor, but rather the property of the trust.
Can take effect during your lifetime: A living trust can manage your assets if you become incapacitated. These are a great option for individuals that may develop dementia or memory loss in the future.
Greater privacy: Trusts are not filed with the court and remain private.
Protect assets from creditors: Assets placed in an irrevocable trust are protected from creditors because they prevent the grantor from maintaining control over the assets.
More complex and costly up front: Trusts require more planning and maintenance but can save your heirs time and money in the long run.
Offers more control: You can set conditions on distributions (e.g., children receive funds only after reaching a certain age).
So, Which One Do You Need?
A Will may be sufficient if your estate is modest, your wishes are straightforward, and avoiding probate isn’t a top concern.
A Trust may be a better fit if you want to avoid probate, maintain privacy, manage assets during incapacity, or have a more complex estate or family situation.
Many people use both. A common approach in Tennessee is to use a revocable living trust for most assets, along with a “pour-over will” to catch anything that wasn't transferred into the trust.
Get Personalized Advice
Estate planning isn’t one-size-fits-all. The right tools depend on your unique situation, goals, and family dynamics. At the Law Office of Grace Keel Buchanan, we can help you weigh your options and build a plan that protects what matters most.
Ready to get started? Reach out today to schedule a consultation and take the first step toward peace of mind for you and your loved ones.
