Family Trust vs Will

A will and a family trust solve different problems. A will directs assets you own at the date of death. A trust holds assets during your lifetime, with the trust property passing under the trust deed, not the will. Most New Zealand families need a will; only some need a trust as well.

Compare Talk to a Lawyer

Reviewed by EstatePlanning.co.nz Editorial Team · Last updated 28 May 2026

Quick answer

You almost certainly need a will. You may also benefit from a family trust if you own significant non-business assets you want to manage during your lifetime, separate from your personal estate, for reasons such as long-term family planning, relationship-property structuring, or protection from claims. A trust does not replace a will — most trust settlors still have a will to deal with personal effects, joint property, and any assets held outside the trust.

Family Trust vs Will — side by side

Family Trust and Will compared
Factor	Trust	Will
When it takes effect	On settlement (during your lifetime)	On death only
What it controls	Assets transferred to the trust	Assets you personally own at death
Typical setup cost	$2,500–$5,000+ (formation + property transfer)	$500–$1,500 (lawyer-drafted)
Ongoing cost	Annual review, accounting if income-generating, IRD disclosures	Storage; periodic review at life events
Trusts Act 2019 obligations	Trustee duties, disclosure to beneficiaries, document retention	None
IRD trust disclosure	Annual return required if trust has income	Not applicable
Probate required?	No — trust property passes under the deed	Yes, if estate exceeds the $15,000 threshold
Family Protection Act 1955 exposure	Trust property is harder (but not impossible) to claim against	Will is directly subject to claims
Relationship property	Can complement contracting-out agreements (Property (Relationships) Act 1976)	Does not displace relationship-property entitlements
Flexibility to change	Subject to trust deed; trustee discretion	Easily revoked or replaced at any time

When a trust fits

Significant non-business assets to manage long-term
Long-term family planning across generations
Settlors who want a structured separation between personal and family wealth
Where ongoing trustee oversight and documentation will be maintained

When a will fits

Every adult — a will is the baseline
Estates that pass straightforwardly to a spouse or children
When the goal is to direct personal assets on death
When formal trust administration is not justified for the asset base

Need help working out which fits your situation? Use the form to talk to a lawyer, or browse the related guides below.

Trust vs Will — FAQ

Do I need both a will and a trust?

Most people who have a trust still also have a will. The will deals with anything you own personally — KiwiSaver, personal effects, vehicles, jointly owned property, and any assets not transferred into the trust. The trust deed deals with whatever the trust owns. Having only a trust and no will is rarely a good idea.

Is a trust still worth setting up under the Trusts Act 2019?

The Trusts Act 2019 increased trustee accountability, mandatory disclosure to beneficiaries, and document-retention duties. It did not abolish trusts; it raised the operating standard. Trusts remain appropriate for the same situations as before — long-term family planning, structured asset management, certain protection scenarios — but the ongoing compliance is more visible. Some pre-2019 trusts have been wound up where there was no longer a good reason to keep them running.

Can a trust replace a will entirely?

In practice, no. Assets that remain in your personal name at death — including some you may have forgotten to transfer to the trust, plus things like KiwiSaver, personal effects and joint-tenancy property — fall outside the trust and need a will or intestacy distribution. A "pour-over" arrangement where everything ends up in a trust on death is not the same thing as having no will.

Which is cheaper — a will or a trust?

A will. A simple lawyer-drafted will starts at around $500. A trust formation runs $2,500 to $5,000 once property transfers and gifting documentation are included, and the trust generates ongoing administration, accounting and disclosure cost. The right comparison is between problem and tool — a trust is not "expensive" if it is solving a problem a will cannot solve, but a trust is overkill if a will would do the same job.

Can I write my will to include a trust?

Yes — that is called a testamentary trust. It is a trust created by the will itself and takes effect on death. Testamentary trusts are commonly used for minor children, vulnerable beneficiaries, or staged distributions. They are different from a "living" family trust set up during your lifetime, but they share the trustee, beneficiary and Trusts Act 2019 framework once they take effect.

Family Trust vs Will

Quick answer

Family Trust vs Will — side by side

When a trust fits

When a will fits

Related guides

Family Trusts (NZ)

Wills & EPAs

Will vs Trust (deep guide)

Asset Protection

Trust vs Will — FAQ