Wills and living trusts share many similarities: having either is far better than having no plan at all. Both let you control what happens to your assets after you die and both require confronting your own mortality—an unpleasant but necessary task.
For many people, a simple will is sufficient. A living trust, however, provides additional advantages: it can give you ongoing control of assets while you’re alive, allow someone to manage your affairs if you become incapacitated, and avoid the public probate process. The tradeoff is higher complexity and cost—setting up and maintaining a living trust usually requires more time, documentation, and professional help than a will.
Because estate laws vary from state to state, work with a qualified estate attorney and financial adviser. This article explains key differences between wills and living trusts and the factors to consider when deciding which approach best fits your circumstances.
What’s the Difference Between Wills and Living Trusts?
A will is a written, signed, and witnessed document that directs how your property will be distributed after you die. You can change or revoke a will at any time while you’re alive, and a will also allows you to name a guardian for minor children.
A living trust is a legal arrangement that manages property while you are alive and continues after your death. You can serve as your own trustee and name a successor trustee to take over if you become incapacitated. Trusts are commonly used to plan for disability and to keep financial affairs out of probate and the public record.
Trusts must be funded to function: only assets transferred into the trust are controlled by it. If you fail to transfer assets into a trust before you die, the trust may offer little or no benefit, and your heirs could miss out on advantages such as certain estate-tax planning strategies.
Plan Before Making a Decision
Before choosing a will or a living trust, assess your current financial situation and clarify your goals. A structured planning process helps ensure your decisions match your objectives. Core steps include:
- Define your estate planning goals: How do you want assets distributed? Who will manage the distribution? Do you prioritize privacy, tax efficiency, or family harmony?
- Gather and organize financial data: Collect account statements, deeds, insurance policies, and other records. Calculate your net worth and confirm how each asset is titled and who is named as beneficiary.
- Analyze and discuss with professionals: Meet with an estate attorney or financial adviser to review options and map out your existing plan.
- Develop strategies: Determine whether a will, a living trust, or a combination of documents best meets your goals.
- Implement your plan: Execute documents, fund any trust you create, and make sure the person responsible for carrying out your wishes knows where documents are stored and understands your intentions.
- Monitor and update: Review your estate plan annually and after major life changes—marriage, divorce, births, deaths, moves, or significant changes in assets.
Situations That Favor a Will
A will is often the simplest and most appropriate choice for many people. If your estate falls below your state’s simplified probate threshold or if probate is relatively straightforward where you live, a basic will may meet your needs without the expense and complexity of a trust.
If your family circumstances are stable and you prefer a one-time planning process rather than ongoing management, a will can be a practical option. Wills typically require less upkeep than living trusts, though you should still review and update them periodically.
Can’t Find a Trustworthy Trustee? Choose a Will
One of a trust’s main goals is to avoid probate by putting assets under trustee control. That places significant responsibility and discretion in the hands of the trustee, so you must pick someone you trust. If you doubt you can name a reliable trustee, a will may be the safer route—probate provides court oversight and additional protections for heirs.
Common trustee choices include a spouse, an adult child, or a trusted advisor. A trustee doesn’t need to be a financial expert, but should be organized, honest, and capable of selecting competent advisers when necessary. Consider whether your chosen trustee could be overwhelmed by caregiving or grief if you become incapacitated or pass away.
Where You Store a Will Is Important
In most states, the executor must produce the original will to begin probate. Where you keep that original document matters: if it’s lost or inaccessible, your estate plan may become harder and more expensive to carry out. Options include a safe-deposit box, a fireproof home safe, your attorney’s office, or filing the original with the county clerk where permitted. Whichever you choose, make sure your executor knows the location.
What Happens in Probate?
Wills generally go through probate—a court-supervised process for settling debts and distributing assets. The executor files the will with the probate court, notifies beneficiaries and creditors, inventories estate assets, and arranges appraisals if needed. Estate expenses, funeral costs, outstanding debts, and taxes are paid first. After liabilities are settled, the remaining assets are distributed according to the will or state law.
A clear, well-drafted will and an informed executor make the probate process smoother.
Parents with Minor Children Should Consider Living Trusts
A will lets you name a legal guardian for your minor children, but a living trust provides more control over how and when assets are distributed to them. With a revocable living trust, you can direct that the trustee manage funds for a child’s care and education and specify ages or milestones when assets should be released. You can also include tailored provisions for children with special needs so they retain access to public benefits while receiving financial support.
If You May Owe Estate Tax, a Trust Can Help
Estate tax rules change over time, and only a small percentage of estates currently owe federal estate taxes. If your estate is likely to exceed the applicable exclusion amount at the time of your death, trusts can be an important tool in tax planning. Certain trust structures can reduce estate-tax exposure by removing or reallocating assets from your taxable estate. Consult an estate attorney or tax adviser to determine whether trust-based strategies are appropriate for your situation.
Living Trusts Can Reduce Family Disputes
Wills usually suffice when heirs are likely to accept your wishes. But living trusts allow greater specificity about distributions and are generally harder to contest because they avoid probate. If you anticipate family conflict—due to unequal gifts made during your lifetime, significant income differences among heirs, or complex blended-family dynamics—a trust can provide clearer instructions and reduce grounds for disputes.
When naming a trustee, consider selecting a single, capable person rather than multiple co-trustees, which can slow decision-making and create conflict.
Added Protection: the Pour-Over Will
Since trusts only govern assets transferred into them, some property may inadvertently remain outside the trust—assets acquired later, accounts overlooked during funding, or items that can’t be retitled easily. A pour-over will acts as a safety net by directing any remaining assets at your death into your trust. Although pour-over wills still typically go through probate, they help ensure that unintended assets ultimately receive the treatment you intended through the trust. Always confirm state-specific tax or procedural implications with an attorney.