Wills vs Trusts: Which Estate Planning Tool Do You Actually Need?

Table of Contents

• Quick Comparison Chart
• What Is a Will?
• What Is a Trust?
• Key Differences Explained
• Cost Comparison
• When a Will Is Enough
• When You Need a Trust
• Using Both Together
• Frequently Asked Questions

Quick Comparison Chart

Here’s a side-by-side look at how wills and trusts compare across the factors that matter most:

What Is a Will?

A will (technically called a “last will and testament”) is a legal document that specifies how you want your assets distributed after you die. It only takes effect upon death and must go through probate—a court-supervised process that validates the will and oversees distribution of assets.

A basic will typically includes:

• Who inherits your assets (beneficiaries)
• Who will manage your estate (executor)
• Guardians for minor children
• Instructions for specific items or bequests
• Funeral or burial preferences

According to Caring.com’s 2025 estate planning survey, only 24% of U.S. adults have a will—meaning three out of four Americans have no estate plan at all. If you die without a will (called dying “intestate”), state law determines who inherits your assets, which may not align with your wishes.

What Is a Trust?

A trust is a legal arrangement where you (the grantor) transfer assets to a separate legal entity managed by a trustee for the benefit of your beneficiaries. Unlike a will, a living trust takes effect immediately when you create and fund it.

The most common type for estate planning is a revocable living trust, which allows you to:

• Maintain control of assets during your lifetime (you can be your own trustee)
• Change or revoke the trust at any time
• Avoid probate entirely for assets held in the trust
• Keep your estate private (trusts aren’t public record)
• Provide for management if you become incapacitated

Other types of trusts serve more specialized purposes:

• Irrevocable trusts permanently remove assets from your estate, potentially reducing estate taxes
• Special needs trusts provide for disabled beneficiaries without disqualifying them from government benefits
• Testamentary trusts are created through a will and take effect only after death
• Charitable trusts benefit both charities and your heirs with potential tax advantages

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Key Differences Explained

Probate: The Biggest Difference

The most significant difference between wills and trusts is whether your estate must go through probate. Probate is a court-supervised process that typically takes 6-18 months (sometimes longer) and costs 3-7% of the estate’s value in legal fees, court costs, and executor compensation.

For example, a $500,000 estate might incur $15,000-$35,000 in probate costs. A trust, by comparison, can be settled in weeks with minimal expense because assets pass directly to beneficiaries without court involvement.

However, not everything goes through probate even without a trust. Assets that pass outside probate include:

• Retirement accounts with named beneficiaries
• Life insurance with named beneficiaries
• Property held in joint tenancy
• Bank accounts with payable-on-death designations

Privacy

Wills become public record once filed with the probate court. Anyone can request to see the will, including what you owned and who inherited it. This is how reporters discover details about celebrity estates.

Trusts remain private. The terms, assets, and beneficiaries are never made public, which appeals to those who value financial privacy or want to prevent family disputes over perceived inequities.

Incapacity Planning

A will is useless if you become incapacitated before death—it only takes effect when you die. If you suffer a stroke or develop dementia, your family may need to pursue a court-supervised conservatorship to manage your affairs, which is expensive and time-consuming.

A revocable living trust includes built-in incapacity planning. If you become unable to manage your affairs, your successor trustee can immediately step in to pay bills, manage investments, and handle financial decisions without any court involvement.

Guardianship for Minor Children

This is one area where wills have an exclusive advantage: only a will can legally designate guardians for your minor children. A trust cannot do this. If you have children under 18, you need at least a basic will to name who should raise them if something happens to you.

Ease of Contesting

Wills can be contested on various grounds: undue influence, lack of mental capacity, improper execution, or fraud. Challenges typically happen during probate, when the will becomes public.

Trusts are generally harder to contest because they take effect while you’re alive and can be managed for years, making it difficult to argue you weren’t of sound mind. They also remain private, giving potential challengers less information to work with.

Cost Comparison

Upfront Costs

Creating a basic will typically costs $150-$600 if done through an online service, or $300-$1,000 through an attorney for a simple estate. Complex wills with trusts created within them can cost more.

A revocable living trust typically costs $1,000-$3,000 through an attorney, or $200-$600 through an online service. However, the trust package usually includes a “pour-over” will, power of attorney, and healthcare directive—documents you’d need anyway.

Ongoing Costs

Wills have no ongoing costs—once signed, they’re done until you decide to update them.

Trusts require “funding”—transferring assets into the trust’s name. This may involve updating property deeds, retitling bank accounts, and changing beneficiary designations. Some people hire attorneys to help with funding, adding $500-$1,500 to the cost.

Settlement Costs

This is where trusts often save money. Probate costs for a will-based estate typically run 3-7% of the estate value:

• $200,000 estate: $6,000-$14,000 in probate costs
• $500,000 estate: $15,000-$35,000 in probate costs
• $1,000,000 estate: $30,000-$70,000 in probate costs

Trust-based estates avoid these costs entirely, potentially saving beneficiaries tens of thousands of dollars on larger estates.

When a Will Is Enough

A simple will may be sufficient if:

• Your estate is relatively small (under $100,000-$200,000 in probate assets)
• Most assets pass outside probate anyway (retirement accounts, life insurance, jointly held property)
• You have minor children and need to name guardians
• Your state has simplified probate procedures for small estates
• Privacy isn’t a concern
• Your family is unlikely to dispute your wishes

Many states offer simplified probate for smaller estates. For example, some states allow “small estate affidavits” for estates under $50,000-$100,000, bypassing formal probate entirely.

When You Need a Trust

Consider a revocable living trust if:

• You own real estate in multiple states (avoiding probate in each state)
• Your probate assets exceed $100,000-$200,000
• You want to keep your financial affairs private
• You’re concerned about incapacity planning
• You want to control when and how beneficiaries receive assets (such as staging distributions)
• You have a blended family with potential for disputes
• You want to make it harder for someone to contest your plan
• You live in a state with high probate costs (California, Florida)

You may need a more specialized trust if:

• Your estate exceeds the federal estate tax exemption ($13.99 million in 2025, approximately $15 million in 2026)
• You have a beneficiary with special needs who receives government benefits
• You want to protect assets from creditors or divorce
• You want to make significant charitable gifts

Using Both Together

For most people with significant assets, the best approach is using both a will and a trust together. Here’s how they work in combination:

Pour-Over Will

A “pour-over” will works alongside your trust. It directs that any assets not already in your trust at death should “pour over” into it. This catches anything you forgot to transfer during your lifetime, ensuring everything ends up in one place governed by your trust’s terms.

The pour-over will still goes through probate for those assets, but having a trust-centered plan ensures consistency in how everything is ultimately distributed.

Guardian Designations

Since trusts cannot name guardians for minor children, you need a will for this purpose even if you have a trust. The will handles guardianship while the trust handles asset management for your children’s inheritance.

Backup Protection

A will serves as a backup if your trust isn’t properly funded or if you acquire assets shortly before death that weren’t added to the trust. It’s your safety net for anything that falls outside the trust.

Frequently Asked Questions