What is the difference between a trust and an estate plan?

A trust is a single document that might plan for your death or incapacity, whereas an estate plan is a collection of documents regarding your death or incapacity. A trust is often included in an estate plan.

An estate plan is a plan for your own death or incapacity. That means that your estate plan includes all documents and beneficiary designations that prepare for your death or incapacity. For example, your estate plan should almost certainly include a last will and testament, which can direct what happens to your assets at death.

Trusts are often used as part of estate planning. The most common trust used is a revocable living trust, which can help you plan for both incapacity and death. Some estate plans also utilize special needs trusts, which are useful if a beneficiary of your estate plan receives government benefits. Or if estate taxes are a concern, you might use a Crummey trust.

However, a good estate plan contains more than just a trust. For example, your estate plan should probably include a designation of health care surrogate, which determines who makes medical decisions for you if you are incapacitated. Estate plans can also include beneficiary designations. For example, you might name a person or entity (like a trust) to be the beneficiary of your life insurance. Finally, estate plans often include joint ownership of assets, like a shared bank account between spouses.

If you need help with your estate planning, contact an estate planning lawyer to help you.