How to Tell If Your Parents Have a Will or a Trust - and Why It Matters for Financial Caregiving
If you’ve recently stepped in to help your aging parents manage their finances, one of the most important (and often overlooked) steps is understanding whether their estate plan is will-based or trust-based.
Knowing the difference isn’t just a legal technicality—it affects how you manage their accounts, how you coordinate with their attorney or financial advisor, and how smoothly things will go in a crisis or after their passing.
Whether you’ve just been named Power of Attorney, are paying bills on their behalf, or are simply trying to get organized, this is a great place to start.
Will vs. Trust: Why It Matters for Financial Caregivers
Most people assume their parents “have a will”—but they often don’t know what that really means. In truth, there are two main types of estate plans:
✅ Will-Based Estate Plan
The last will and testament outlines who gets what after death
There is no trust
Assets without a joint owner or beneficiary designation go through probate, a court-supervised process, where the will takes precedence
May be accompanied by powers of attorney and health care directives
Financial accounts typically stay in the parent’s name until death
✅ Trust-Based Estate Plan
A revocable living trust holds title to most financial assets
The trust may be listed as beneficiary of assets that cannot be titled under the trust
Assets avoid probate and can be managed seamlessly during incapacity
Trust spells out who controls and receives assets
May include a “pour-over” will for non-trust assets
May also be accompanied by powers of attorney and health care directives
Why does this matter? If you’re helping with financial caregiving—like managing bank accounts, investments, or property—you need to know what kind of plan governs those assets. Otherwise, you could trigger avoidable delays, taxes, or conflicts down the line.
Signs Your Parents Have a Will-Based Estate Plan
They mention a will, but no trust documents
Financial accounts are all in their name (no trust titling)
Real estate is titled in their individual name, not a trust
No mention of successor trustees—just executors
They haven’t worked with an estate attorney recently
🟡 Risk of a Will-Based Estate Plan for Caregivers: You may face probate delays, higher estate settlement fees, account freezes at death, or difficulties accessing funds—even with Power of Attorney.
Signs Your Parents Have a Trust-Based Estate Plan
They reference a revocable living trust or “family trust”
Legal documents are titled something like The Smith Family Trust
Financial accounts or real estate are titled in the name of the trust
You’ve been named as a successor trustee (not just POA)
Their attorney or financial advisor has helped coordinate account titling
🟢 Benefits of a Trust-Based Estate Plan for Caregivers: Trust-based plans allow for smoother financial oversight, especially during incapacity, and typically avoid probate altogether.
Action Steps: What Adult Children Should Do Now
If you're in the role of helping aging parents with their finances, here’s how to take the next step with clarity:
Ask to see their estate documents
Look for a will, a revocable living trust, or both. A “pour-over will” often accompanies a trust.Check how accounts are titled
Non-retirement bank and investment accounts typically list the trust if it's active. If everything’s still under your parent’s name, they may not have funded the trust properly—or don’t have one at all.Confirm Powers of Attorney and Trustee Roles
Are you legally allowed to act? Are POAs up to date? If it’s a trust, are you the named successor trustee?Schedule a financial review
Work with a financial advisor to align account titling, beneficiaries, and income strategy with the estate plan. This step is critical for reducing taxes and ensuring a smooth wealth transfer later.Download our checklist
👉 Free Download: Does Your Parent Have a Will or a Trust? A Quick Guide for Adult Children
What Happens If You Do Nothing?
Failing to understand your parent’s estate plan leaves you at risk of:
Frozen accounts during incapacity or death
Duplicate or missed Required Minimum Distributions (RMDs)
Misaligned beneficiaries that conflict with the estate plan
Unnecessary probate, taxes, and legal costs
You Don’t Have to Do It Alone
At Stonehearth Capital Management, we work closely with adult children who are taking on the responsibility of financial caregiving. We help you:
Consolidate and organize your parents’ accounts
Generate retirement income aligned with their wishes
Ensure all accounts align with their estate plan
Plan ahead for RMDs, income taxes, and state/federal estate taxes
Coordinate with attorneys and make updates proactively
If you’re stepping in to help your parents, schedule a Financial Caregiving Strategy Call today. We’ll walk you through what to look for and what steps to take next—without pressure.