For many families, writing a will feels like the final step in estate planning. It names heirs, lists assets and records how the estate should be distributed. But for families with properties across states, children settled abroad or beneficiaries who may require long-term support, a will alone can leave important gaps, said Priyanka Desai, co-founder and partner at The Fort Circle.
“A will is sufficient for a straightforward estate involving traditional immovable and financial assets. However, a trust becomes a better choice in these complex matters, like when provisions for minors or financially inexperienced beneficiaries are to be included, there are beneficiaries with special needs or assets located abroad or across multiple jurisdictions,” she said.
This article unpacks the circumstances in which a trust may be a more effective succession-planning tool than a will.
Will prone to litigation
A will comes into force only after the person making it has died. Until then, it has no legal effect.
This creates two challenges. First, it cannot manage affairs if the person becomes incapacitated before death. Second, because it takes effect only after death, it remains vulnerable to legal challenges and prolonged litigation.
"A will may be challenged on grounds such as lack of testamentary capacity, undue influence, suspicious circumstances, improper execution or later revocation,” said Rishabh Gandhi, founder, Rishabh Gandhi and Advocates.
A trust can address both concerns. In the case of incapacity, an alternative to a trust is a living will, which outlines conditions relating to medical care.
The second challenge, however, can be mitigated only through a trust.
Shraddha Nileshwar, Head - will & estate planning at financial planning firm 1 Finance, said a will can be easily manipulated, particularly in an era of AI-generated documents.
"A private trust, because it is registered and has its own PAN and TAN, is very difficult to doctor."
Even a carefully drafted will may still be subject to lengthy legal processes. If heirs seek probate, additional costs arise and the process can take months before the will can be executed.
Trust advantage
A trust addresses many of these concerns.
“A living private trust is different as it is created during the lifetime of the settlor, assets may be transferred while the settlor is alive, and since the structure starts operating during the settlor's lifetime, there is generally greater clarity on intention and implementation,” Gandhi said.
However, the level of protection depends on how the trust is structured.
A private trust may be created during a person's lifetime or under a will as a testamentary trust. The latter comes into effect only upon the death of the testator, much like a Will itself.
"When the trust is created during one's lifetime, it offers stronger protection. When it is created under a will, it activates upon the death of the testator and is therefore exposed to the same vulnerability as the will itself," said Desai.
The key distinction is that a trust established and operational during a person's lifetime gives both the settlor and trustees an opportunity to create clarity, resolve ambiguities and establish a documented record of intent.
“While no instrument is entirely immune from judicial scrutiny, a trust narrows the scope for conventional succession disputes and provides a greater degree of certainty in the transmission and administration of wealth,” said Tushar Kumar, advocate, Supreme Court of India.
When a family member has special needs
This is where trusts play a particularly important role.
For families with a member who has a physical disability, autism or an intellectual impairment, a will can transfer assets but cannot create an ongoing support structure.
A private trust can specify exactly how the corpus should be used, whether for medical expenses, therapy, daily living costs or caregiving. Trustees are then obligated to administer the funds according to those instructions for as long as the beneficiary requires support.
Nileshwar recalls a client whose daughter had multiple sclerosis and had lost all motor function, with voice as her only remaining faculty.
"The father requested to include provisions where she could demand money by phone, and the trustees would pay directly to the therapist or the hospital. At no point did she have to intervene or make payments herself. Will doesn’t allow one to create such a support structure," she said.
Staggered distribution
Trusts also help families with young heirs.
A common succession concern is ensuring that assets are not handed over in a lump sum to someone who may not yet be ready to manage them.
A will can technically provide for deferred vesting—for example, directing that a child receives an inheritance only after turning 25. However, it cannot create a structured mechanism for managing assets during the intervening period.
The executor may hold the assets, but a will provides no framework for investment decisions, income distribution or responding to changing circumstances.
A trust offers far greater flexibility in how wealth is distributed and managed over time.
“A trustee can manage and preserve the assets during the interim period, apply income for the beneficiary's education or welfare, and ensure smooth handover when the time comes. A will, by contrast, does not have such a built-in mechanism for ongoing management,” said Desai.
NRI heirs
For families with children settled overseas, the case for a trust becomes even stronger.
After a person's death, NRI heirs managing Indian assets often face a long administrative process involving banks, housing societies, tax filings, tenants and repatriation requirements, all while residing abroad.
A living trust allows Indian trustees to continue managing assets according to the settlor's documented instructions, without requiring heirs to be physically present at every stage, said Kumar.
"This reduces administrative disruption and facilitates smoother transmission of wealth across jurisdictions."
The right structure ultimately depends on the nature of the estate and the needs of those who will inherit it.
For many families with growing and increasingly complex estates, a will is where succession planning begins.
But it should not necessarily end there.