Do You Need a Will or a Living Trust? Key Differences Explained
When it comes to protecting your legacy, few decisions are more important than choosing the right estate planning tool. Should you create a will, a living trust, or both?
The answer depends on your life stage, family structure, the complexity of your assets, and what kind of control or privacy you want after you’re gone. Both tools serve the same purpose ensuring your assets go where you want but how they get there (and what happens along the way) is very different.
In this guide, we’ll break down the key differences between wills and living trusts so you can make the right decision for your future.
What Is a Will?
A will, or “last will and testament,” is a legal document that states how your property should be distributed after your death. It also allows you to:
- Appoint a guardian for minor children
- Name an executor to carry out your wishes
- Detail specific bequests (like family heirlooms or donations)
Pros:
- Simple and cost-effective
- Can be updated as life changes
- Names guardians for your children
Cons:
- Goes through probate (a public court process)
- Can take months—or even years—to settle
- Offers no privacy or asset protection
Did You Know? Probate can cost between 3%–7% of your estate’s value in legal fees and court costs (Nolo, 2024).
What Is a Living Trust?
A living trust is a legal entity that holds ownership of your assets while you’re alive and distributes them automatically when you pass away—without going through probate.
You remain in control of the trust as the trustee during your lifetime, and you name a successor trustee to take over after your death or incapacity.
There are two main types:
- Revocable Living Trust: You can modify or cancel it anytime.
- Irrevocable Trust: You can’t change it once it’s created, but it offers stronger asset protection.
Pros:
- Avoids probate
- Keeps your finances private
- Faster asset transfer to heirs
- Helps during incapacity—not just after death
Cons:
- More expensive to set up
- Requires retitling your assets (e.g., homes, accounts)
- Doesn’t appoint guardians (you still need a will for that)
Wills vs. Living Trusts: Side-by-Side Comparison
Here’s a breakdown to help you compare the two:
| Feature | Will | Living Trust |
|---|---|---|
| Goes through probate | Yes | No |
| Takes effect when | After death | As soon as it’s created |
| Names guardian for children | Yes | No |
| Privacy | Public | Private |
| Handles incapacity | No | Yes |
| Can be challenged in court | Yes | Less likely |
| Requires asset retitling | No | Yes |
| Typical cost | $150–$600 | $1,000–$3,000 |
| Best for | Simple estates | Complex or high-value estates |
Who Benefits Most from a Will?
A will is a solid choice if:
- You have minor children and need to name a guardian
- Your estate is modest or mostly consists of personal belongings
- You’re okay with the probate process
- You don’t have time or budget for a living trust right now
Example:
John, a 34-year-old father with a modest savings account, life insurance, and two young kids, used a will to name guardians and divide his assets evenly among his children. He’s comfortable letting his estate go through probate when the time comes.
Who Benefits Most from a Living Trust?
A living trust is ideal if you:
- Want to avoid probate delays and costs
- Own real estate in multiple states
- Have a blended family or complicated relationships
- Need privacy in your estate matters
- Want to plan for incapacity as well as death
Example:
Martha, age 68, owns property in California and Arizona. She set up a revocable living trust to avoid out-of-state probate and ensure her children inherit without court intervention. She also appointed a successor trustee in case of Alzheimer’s or other future health issues.
Common Misconceptions About Trusts and Wills
“If I have a will, my family avoids probate.”
Not true. A will guarantees your estate goes through probate. Only trusts, payable-on-death accounts, and joint ownership avoid it.
“Living trusts are only for the rich.”
False. Anyone who wants to skip court delays, ensure privacy, or plan for incapacity can benefit regardless of wealth.
“Trusts protect against all lawsuits and creditors.”
Only irrevocable trusts may offer creditor protection. Revocable trusts don’t shelter your assets during your lifetime.
Do You Need Both a Will and a Trust?
In many cases, yes.
Even if you have a living trust, you’ll still need what’s called a “pour-over will” to cover any assets you forgot to transfer into the trust.
Plus, you’ll still use your will to:
- Name guardians for minor children
- Specify final wishes (like funeral instructions)
- Serve as a backup document for your trust
A Few Words About Digital Assets and Estate Planning
As of 2025, more estate plans are including digital assets like:
- Cryptocurrency
- Online banking and investment logins
- Social media accounts
- Cloud storage and intellectual property
Both wills and trusts should reference these and name someone to handle them legally.
Final Thoughts: Don’t Delay Planning
Whether you choose a will, a living trust, or both, doing nothing is the worst option. Without a plan, your loved ones are left guessing and battling courts during a painful time.
Start with what’s right for your current life stage and update as your circumstances change. Most importantly, speak with an estate planning attorney to tailor a solution to your needs.
Planning now means peace of mind later for you and your family.
Next up: What Happens If You Die Without a Will? Learn how intestacy laws work and why it’s critical to leave clear instructions.
