Do You Still Need a Will if You Have a Living Trust?

A living trust is a revocable trust into which transfer ownership of designated assets during your lifetime. As the trust’s creator, you typically serve as its trustee, retaining complete control over the assets while you are alive. Upon your death, a designated successor trustee takes over management and directs distribution of the trust’s assets to your named beneficiaries — all without going through probate. 

If you have created a living trust, you may wonder whether you still need a will. At first glance, it might seem that a living trust alone will suffice, but in practice, most people benefit from having both documents as part of a comprehensive plan tailored to their particular needs and goals.

Wills and living trusts each transfer property to designated beneficiaries, but there are differences in what they cover and how they work. Significantly, a living trust governs only those assets that you have formally transferred into it during your lifetime. Any property left outside the trust does not fall under its terms. In contrast, a will addresses all the property you own at the time of your death, except for assets that pass automatically by other means (such as joint tenancies or life insurance proceeds).

Furthermore, a will typically includes a “residuary clause” that specifies how to distribute any property not specifically listed elsewhere in the document. This is important because any property not already covered by your trust or specific bequests would otherwise be subject to Michigan’s laws of intestate succession, which may not match your wishes.

To bridge the gap between the trust assets and your other property, you can create what is known as a “pour over will.” This type of will directs that any assets not titled in your living trust at your death are to be transferred into your trust and distributed according to its terms. This acts as a safety net to ensure no property unintentionally escapes your estate plan.

A will also can address matters a living trust does not. For example, a will can appoint a guardian for minor children. A will can direct the distribution of personal property, such as family heirlooms or items of sentimental value, and address the payment of debts and expenses. A will can give instructions about funeral arrangements or the handling of digital assets and social media accounts. In addition, a will may be used to nominate an executor, who is responsible for settling the administrative affairs of the estate. 

Because estate planning raises many technical and legal issues, consulting with an experienced Michigan wills attorney is advisable. An attorney can ensure that your will and living trust are properly drafted and coordinated, so that your estate is handled efficiently and in accordance with your wishes. 

At Otlewski & Maloney, P.C. in Rochester Hills, we draft effective wills and living trusts for clients throughout Michigan. Call us at 248-759-5641 or contact us online to set up an appointment.