People who own significant assets often think about the future, as everyone has to leave this world and everything. Planning for your future is essential to protect your family and ensure your assets are distributed as you wanted. In British Columbia, the two most common tools for this are wills and trusts. Although both manage your property, they function differently. In this article, you will clearly understand the difference between the options, so you will know which option will work best for you.
What is a Will?
A will is a legal document where you explain what should happen to your money, property, and belongings after you pass away. With a valid will, you can:
- Choose someone you trust to handle your estate after your death
- Decide who will inherit your property, money, or other belongings
- Designate guardians for minor children
- Share your wishes for your funeral or burial
Without a will, your estate will be distributed according to British Columbia’s standard laws. These standard rules might not match what you want. A properly prepared will clarifies your intentions for your loved ones and helps prevent disputes or legal issues.
What is a Trust?
A trust is a fiduciary arrangement where you give assets to a trustee to manage for the benefit of your chosen recipients. A trust can be used during your lifetime or after your death, depending on its type. In British Columbia, trusts are commonly used to:
- Give long-term financial support to children or dependents
- Keep assets safe from creditors
- Lower probate costs and taxes
- Maintain privacy, since trusts don’t go through the public probate process
Common trust types include:
Living Trusts: Created and effective during your lifetime.
Testamentary Trusts: Established in your will and take effect after your passing.
Family Trusts: Typically used to manage assets and optimize tax planning for family members.
Main Differences Between Trusts and Wills in British Columbia
| Feature | Will | Trust |
| When it works | After death | Can start while alive or after death |
| Probate | Required, may take time and cost | Usually avoids probate, faster |
| Privacy | Public record | Stays private |
| Control | Simple inheritance instructions | Can set rules for how/when assets are used |
| Cost | Cheaper to set up | More costly but saves later |
When a Will Might Be Enough?
For many people in B.C., a will is enough. If your estate is simple, your heirs are adults, and you’re not worried about probate or privacy, a will can share your wishes clearly. For example:
- Leaving your home and bank accounts to your spouse or children
- Naming guardians for minor children
- Making charitable gifts
In these cases, a properly drafted will ensures your assets are distributed smoothly and according to law.
When a Trust May Be Better?
A trust may be the right choice if your situation involves more complexity. You might benefit from a trust if you:
- Own significant assets or multiple properties
- Want to provide long-term support for minors, dependents, or family members with disabilities
- Are concerned about potential challenges to your will
- Wish to reduce probate fees or keep your estate details private
- Have business interests you want managed in a structured way
By setting up a trust, you gain more control over how and when assets are distributed, which can provide peace of mind for families with special needs or complex estates.
Do You Need Wills and Trusts Both?
Many people have the question that: Do I need a will or trust in BC? In British Columbia, using both a will and a trust is often the best choice. A will covers personal belongings as well as guardians for children, while a trust manages bigger financial matters. Together, they make sure your wishes are followed and reduce stress for your family.
Conclusion
Choosing between a will and a trust in British Columbia depends on your situation, finances, and family needs. For simple estates, a will is usually enough. For more complex cases, a trust gives you more control, privacy, and flexibility. The planning for either will or trust can be difficult to handle, therefore with the right plan, you can protect your assets and better plan for your family members. Always consider consulting with an expert law firm for drafting wills and trusts.
