Wills, Trusts, and Power of Attorney: The Basics

These three legal tools serve different purposes, and understanding how they relate helps you figure out what you actually need.

What does a will do?

A will is a legal document directing how your property should be distributed after death, and naming an executor to carry out those instructions. Wills generally go through probate - the court process validating the will and overseeing distribution.

What does a trust do, and do I need both a will and a trust?

A trust can hold and manage assets, both during your lifetime and after death, often with the specific benefit of avoiding probate for assets placed in it. Trusts can also allow more control over how and when beneficiaries receive assets - for example, distributing funds gradually rather than all at once. Trusts are generally more complex to set up than a basic will, and often make more sense for larger or more complicated estates.

Not everyone needs both - many people only need a will. Trusts are often used for more complex estates, minimizing probate, or specific goals like controlling how and when beneficiaries receive assets. An estate attorney can help determine what’s appropriate for your situation.

What’s the difference between power of attorney and a healthcare proxy?

Power of attorney names someone to make financial or legal decisions on your behalf while you’re alive but unable to act yourself - managing bank accounts, paying bills, handling property. This is distinct from a healthcare proxy, which specifically covers medical decisions. Some people name the same person for both roles; others choose different people based on each person’s strengths.

Power of attorney authority ends the moment someone dies — a common point of confusion.

Does power of attorney continue after death?

No - a common point of confusion: power of attorney authority ends the moment someone dies. From that point, an executor (named in the will) takes over, working through probate - power of attorney cannot be used to manage an estate after death.

Do I need a lawyer to create these documents?

For a simple will, some states offer accessible templates or simplified processes. For a trust, a more complex estate, or specific goals, working with an estate attorney is generally the better path, given how much these tools can vary by state and situation.

If you’re deciding whether to name more than one executor, see our guide on how co-executors work and what happens when they disagree.

If someone has been diagnosed with dementia, see whether someone with dementia can still sign a will or power of attorney and planning ahead after an early dementia diagnosis.

For when a court has to appoint a decision-maker for an adult, see Guardianship and conservatorship for adults.

This is general educational information, not legal advice. Rules vary significantly by state — consult an estate attorney for guidance specific to your situation.