Trusts vs. Wills: What’s the Difference and When to Use Each in Alberta

When planning for the future, many people are familiar with the idea of creating a will, but fewer understand how a trust works or when it might be the better tool. Both are important estate planning instruments, and each serves a different purpose depending on your goals, family situation, and the assets you hold.

The following is a breakdown of some key differences between wills and trusts, and when each might be right for you.

What Is a Will?

A will is a legal document that outlines how your assets should be distributed after your death. It also allows you to appoint a personal representative to administer/disbtibute your estate and a guardian for any minor children.

Key Features of a Will:

• Takes effect only upon your death.

• Must go through the Court probate process.

• Publicly accessible through court records.

• You can update it anytime while you have legal capacity.

• Covers assets you solely own at the time of death.

What Is a Trust?

A trust is a legal arrangement where one party (the trustee) holds and manages assets on behalf of another (the beneficiary). Trusts can be set up during your lifetime (inter vivos trust) or upon your death (testamentary trust).

Common Types of Trusts:

• Inter Vivos Trust (Living Trust): Created while you're alive, often used for tax planning, privacy, or disability planning.

• Testamentary Trust: Created through your will and comes into effect after death.

Key Differences Between Wills and Trusts

Feature	Will	Trust
When it takes effect	After death	Can take effect during life or after
Probate required?	Yes	Often avoids probate (in some cases)
Public or private?	Public	Generally private
Use for incapacity planning?	No	Yes (inter vivos trust)
Flexibility in control	One-time distribution (typically)	Can stagger payments or set conditions

When Should You Use a Will?

A will is essential and almost always recommended. You should consider having one if you:

• Own property or assets.

• Have children or dependents.

• Want to control who inherits your estate.

• Need to name a guardian for minor children.

This is not an exhaustive list. A Will usually simplifies the probate process, reduces family disputes, and ensures your wishes are known and followed.

When Should You Consider a Trust?

Trusts are particularly useful in the following situations:

• You have minor or disabled beneficiaries and want to protect their inheritance.

• You want to avoid probate or maintain privacy about your estate.

• You own property in multiple provinces or countries, which can complicate probate.

• You want to control how and when assets are distributed, such as holding funds until a beneficiary reaches a certain age or milestone.

• You are in a blended family and want to ensure children from a prior marriage receive part of the estate.

This is not an exhaustive list. 

Tax Considerations

While both wills and trusts can impact your taxes, trusts are more complex and may require additional planning. It’s important to consult with a tax advisor to ensure you understand the tax implications in your specific case.

Final Thoughts

If your estate is relatively straightforward, a will might be all you need. But if you have more complex needs — like blended families, disabled dependents, or property in different jurisdictions — adding a trust to your estate plan can provide more control, privacy, and peace of mind.