Will vs. Trust: Which Do You Need?

If you’re married, have children or own real estate, you very likely need an estate-planning foundation. That foundation is most often a will. 

But if you want more control, privacy and flexibility, a trust may be worth the extra effort. 

Choosing between a will and a trust is one of the most important decisions you’ll make in mapping out your legacy.

What a Will Does & What It Doesn’t

In essence, a will represents a legal document declaring how your assets are to be distributed after your death. It typically names an executor of your will to carry out your wishes, and is both simpler and less costly than setting up a trust.

Through a will you can also appoint a guardian if you have children that are still underage after your death, as well as set up your funeral wishes.

The biggest potential downside of a will lies in the fact that it only takes effect after you die, so in case of debilitating injury for example, it offers nothing to help someone manage your affairs.

Also, your estate must go through probate, which is the court-supervised process of validating your will and distributing your assets, which can sometimes be slow and costly, especially if your will is challenged.

For people with fewer assets, probate is usually easy to go through, but if you own property in multiple states or have complex assets, the cost and delay can grow.

A basic will can cost anywhere from $0 to $1,000, depending on a number of factors, including attorney costs, the state you live in, and the complexity of your assets.

What a Trust Brings

A trust (more specifically a revocable living trust), is a legal entity you set up during your lifetime. With a trust, you act as the grantor and transfer titled assets like your home or investment accounts into the trust. 

This way, you can serve as trustee while alive and competent, but you can also name a successor trustee to act if you die or become incapacitated.

Due to this, a well set-up trust can give you a number of advantages. First and foremost, it can take effect immediately, while also giving you greater control over your assets and how and when they are distributed.

Even after your death, a trust will often bypass probate, with the successor trustee distributing assets directly and without court supervision, which not only shortens the process and makes it far less costly, but also ensures the details of your estate to remain private and out of the public court record.

That said, it comes with higher cost and more effort. You must actively fund the trust or else items may inadvertently fall outside and end up in probate anyway. 

You might see simple online trust arrangements costing several hundred dollars, while fully bespoke attorney-drafted trust packages can run $3,000 or more, especially if there are business holdings or multiple layers of protection.

For a deeper look at the topic, you can always consult our page explaining the ins and outs of trust funds.

Key Differences Explained

Why You Often Need Both

Rather than a strict “either/or” choice, many estate-planning professionals recommend using both a trust and a will together. 

The typical structure would be to set up a revocable living trust and fund it with your major titled assets, while also creating a “pour-over” will that sends any assets not funded into the trust at your death.

By doing this, you maintain powers of attorney and a health-care directive, while also making sure that your beneficiary designations align with the trust/estate plan.

This combined approach ensures nothing falls through the cracks, as the trust covers assets titled into it, and the will covers everything else, while your incapacity instruments cover unmet needs if you become unable to act.

Final Thoughts

As you can see, the real differences between a will and a trust are about timing, control, cost, privacy and family-specific issues. 

If you have simpler needs and accept the probate process, a will may serve you well. If you want more control, smoother transition, better privacy and stronger incapacity coverage, a trust is often the smarter choice.

Whatever path you take, the most important step is execution: you must draft, sign and update your documents regularly. Revisit your estate plan after major life events like marriage, divorce, birth of a child, move to another state or business sale. 

Without review and funding, even the best plan won’t work.