Mr. Haynes Explains: Do You Need a Will or a Trust in Tennessee?

This is one of the most common questions I get:

“Do I need a will, or do I need a trust?”

And like most legal questions, the honest answer is:

It depends on your goals.

But I’m going to break this down in plain English so you can actually understand the difference, and more importantly, when each one makes sense.

Let’s Start With Cost (Because Everyone Is Thinking It)

Let’s not dance around it.

A simple will in my office typically runs about:

• $250 (individual)
• $500 (mutual wills for husband and wife)

A trust package typically starts around:

• $2,500+

That’s a big difference.

So the real question becomes:

What are you getting for that extra cost?

The Core Difference (In Plain English)

Wills

A will is designed to:

• Transfer your assets all at once upon death
• Name beneficiaries
• Appoint an executor
• State guardianship preferences for minor children

Wills typically go through probate, which is the court-supervised process of administering your estate.

Trusts

A trust is designed to:

• Hold and manage assets during your life and after your death
• Allow for flexible distributions over time
• Avoid probate for assets placed into the trust
• Keep things private (unlike probate, which is public)

Trusts are more like a long-term management tool, not just a transfer tool.

The Big Reason People Want a Trust: Avoiding Probate

Most people who ask about trusts say something like:

“I want to avoid probate.”

And I understand why.

A lot of people have seen:

• Family fights
• Delays
• Expensive litigation
• Stressful probate situations

But here’s the truth:

Not all probate is long, protracted, or difficult.

Some probate cases are:

• Straightforward
• Relatively quick
• Not particularly expensive

Others? Yes, they can be a mess.

A trust can avoid probate, but whether you need to avoid probate depends on your situation.

Pros and Cons: Will vs. Trust

Trusts Only Work If They’re Funded

This is where a lot of people get tripped up.

Creating a trust is step one.

Funding the trust is step two, and it’s critical.

That means actually placing assets into the trust, such as:

• Bank accounts
• CDs
• Money market accounts
• Real estate (via deed)

If you don’t fund the trust, you’ve basically paid for a very expensive piece of paper.

A Word of Caution: IRAs and Trusts

Be careful here.

IRAs and certain retirement accounts:

• Are subject to required distributions after death
• Must typically be paid out within a certain number of years

Using an IRA to fund a trust is often not the best strategy without careful planning.

This is one of those areas where getting it wrong can create tax and distribution problems.

What Comes With a Trust Package?

When you set up a trust, you’re not just getting one document.

A typical trust package includes:

• The Trust Document
• Certificate of Trust (used for banks and institutions without disclosing everything)
• Deeds (if you are placing real estate into the trust)
• Pour-Over Wills (to catch anything that didn’t make it into the trust)

What About Minor Children?

Both wills and trusts can:

• Name guardianship preferences for minor children
• Provide structure for how assets are handled

You do not need a trust just to address guardianship.

The Danger of Online “DIY” Wills

This is where I see people get burned.

Online will forms (LegalZoom and others) are appealing because they’re cheap and fast.

But there are real risks:

• The forms may not be Tennessee-specific
• They may not reflect current Tennessee law
• They don’t guide you through proper execution

And here’s the biggest problem:

A will is only valid if it is executed properly.

That means:

• Proper witnesses
• Proper signing procedures
• Everyone signing in the correct manner and at the correct time

If those formalities are not followed, the court does not “fix” your will.

It throws it out.

And now your “estate plan” is no plan at all.

Who Absolutely Needs at Least a Will?

If you:

• Are married
• Have children
• Own real estate
• Own a business
• Have any meaningful assets

You need at least a will.

No exceptions.

If you don’t write your estate plan, the State of Tennessee will write it for you, and you probably aren’t going to like it.

So, Which One Should You Choose?

A Will Might Be Right If:

• Your situation is relatively simple
• You’re okay with probate
• You want a cost-effective plan
• You don’t need long-term control

A Trust Might Be Right If:

• You want to avoid probate
• You want privacy
• You want long-term control over distributions
• You have a more complex situation

Final Thought

This isn’t about which option is “better.”

It’s about which option fits your goals.

A will is not a bad plan. A trust is not always necessary.

But having no plan at all is where people get into trouble.

The best estate plan is one that:

• Matches your life
• Matches your assets
• And is actually set up correctly

Trusted Counsel. Proven Results.
Mr. Haynes Explains