Wills and trusts are both estate planning tools, but they work differently, cost differently, and serve different purposes. Here's how they compare.
How They Work
A will is a legal document that tells a court what you want to happen after you die [1]. It names your beneficiaries, appoints an executor, and can nominate a guardian for minor children. It only takes effect after death, and it must go through probate.
A revocable living trust is a legal arrangement where you transfer ownership of your assets into the trust during your lifetime [2]. You serve as your own trustee while alive. When you die, your successor trustee distributes assets according to your instructions, typically without court involvement.
Key Differences
Probate. A will goes through probate. A trust generally does not [3]. Probate is a court-supervised process that can take months and cost 2% to 7% of the estate's value, depending on your state [5].
When it takes effect. A will only activates after death. A trust is active during your lifetime, which means it can include instructions for managing your assets if you become incapacitated.
Privacy. A will becomes public record once it enters probate. A trust remains private.
Cost to create. A basic will typically costs $0 to $1,000. A trust-based plan typically costs $1,500 to $3,000+ [4].
Ongoing maintenance. A will requires no maintenance after signing. A trust requires you to retitle assets into the trust ("funding") and update it as you acquire new assets.
Guardian nomination. Only a will can name a guardian for minor children. If you have a trust, you still need a will for this purpose.
Coverage. A will covers everything you own at death. A trust only covers assets that have been transferred into it. Assets left outside the trust may still go through probate.
Who Needs a Will
Most people. A will is the right starting point for anyone who wants to control what happens to their assets and, if applicable, who raises their children [4]. It's simpler, cheaper, and sufficient for many situations.
A will is typically enough if you have modest to moderate assets, own property in only one state, want to name a guardian for minor children, and don't have strong privacy concerns about your estate.
Who Should Consider a Trust
A trust may make sense if you own property in more than one state (to avoid probate in each), you have substantial assets where probate costs would be significant, privacy is important to you, or you want a single plan that covers both death and incapacity [2].
Can You Have Both?
Yes, and many people with trusts do. A "pour-over will" serves as a backup, catching any assets that weren't transferred into the trust during your lifetime and directing them into the trust after death [4].
The Bottom Line
A will is simpler, cheaper, and sufficient for most people. A trust adds privacy, probate avoidance, and incapacity planning, but costs more and requires ongoing attention. The right choice depends on your assets, your state's probate process, and your priorities.
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Related Reading
- Will vs. Trust: What's the Difference? for a more detailed guide
- What Is Probate? to understand the process a trust avoids
- The Cost of Estate Planning for price ranges on both wills and trusts
- Probate in the glossary