May 20, 2025

By Mark Mikulasik

Estate planning is a crucial step in ensuring your assets are distributed according to your wishes after you pass away.

Two of the most common tools used in estate planning are wills and trusts. While both serve the purpose of asset distribution, they have distinct features and benefits. Understanding the differences between wills and trusts can help Ontario residents determine which option best suits their needs.

WHAT IS A WILL?

A will is a legal document that outlines how your assets should be distributed upon your death. In Ontario, wills are governed by the Succession Law Reform Act (SLRA). To be legally valid, a will must be written, signed by the testator, and witnessed by at least two people who are not beneficiaries.

Key Benefits of a Will:

• Simplicity – Wills are straightforward and relatively easy to create.
• Affordability – Drafting a will is usually more cost-effective than setting up a trust.
• Executor Control – You can name an executor to manage your estate and distribute assets according to your wishes.
• Guardianship Designation – If you have minor children, a will allows you to designate a guardian for them.

 

Limitations of a Will:

• Probate Process – Wills typically go through probate, which can be time-consuming and costly.
• Public Record – Once probated, a will becomes part of the public record, reducing privacy.
• Immediate Distribution – Assets are distributed upon death, which may not be ideal for complex estates.

 

WHAT IS A TRUST?

A trust is a legal arrangement where assets are held by a trustee on behalf of beneficiaries. Trusts can be created during a person’s lifetime (inter vivos trust) or upon their death through a will (testamentary trust). An inter vivos trust can survive your death.

Key Benefits of a Trust:

• Avoids Probate – Assets in a trust bypass the probate process, allowing for quicker and more private distribution.
• Continued Asset Management – A trust allows for ongoing management of assets, which is beneficial for minor children or beneficiaries with special needs.
• Tax Planning Advantages – Certain trusts can reduce tax burdens for beneficiaries.
• Increased Control – You can specify conditions for distributions, such as age requirements or specific uses of funds.

 

Limitations of a Trust:

• Cost and Complexity – Setting up and maintaining a trust can be more expensive and legally complex than drafting a will.
• Ongoing Administration – A trustee must actively manage the trust, which requires time and effort.

 

WHICH ONE IS RIGHT FOR YOU?

The choice between a will and an inter vivos trust to distribute your assets depends on several factors, including the complexity of your estate, your privacy concerns, and your desire for control over asset distribution.

• A Will May Be Best If:
  • You have a straightforward estate.
  • You want an easy and affordable way to distribute assets.
  • You need to name guardians for minor children.
• A Trust May Be Best If:
  • You want to avoid probate and keep matters private.
  • You have minor children or dependents with special needs.
  • You have a large or complex estate requiring structured asset management.
  • You want to control how and when beneficiaries receive their inheritance.

 

TAKEAWAYS

• For Ontario residents with extensive assets or special issues, a combination of both a will and a trust may be the best approach.
• A will ensures that all assets not placed in a trust are distributed according to your wishes.
• A  trust can provide enhanced planning and flexibility.
• Consulting with an estate planning lawyer can help you make an informed decision that aligns with your financial and family goals.

 

WHAT WEILERS LLP CAN DO TO HELP YOU

A  Weilers LLP estate planning  lawyer can provide valuable expertise, advice, and peace of mind that your estate plan is tailored to suit you. . When it comes to planning for the future, it’s worth investing in professional legal assistance to ensure that your will is comprehensive, valid, and fully reflective of your intentions.

By working with a Weilers LLP lawyer to prepare your estate plan, you safeguard your legacy and protect your loved ones from unnecessary complications in the future.

Want to know more? Give us a call and speak to one of our lawyers. We may be the right lawyers for you.