Planning for the future is important, but choosing between a living trust vs. will can be confusing. While both help distribute your assets, they work in different ways—and understanding these differences can save your family time, money, and stress. This article breaks down each and gives you the information to decide which one (or both) is right for you.
What Is a Will?
A last will and testament is a legal document that:
- Outlines who inherits your assets after death
- Appoints an executor to handle your estate
- Names a guardian for minor children (if applicable)
Pros and Cons of a Will
A will is a simple and affordable way to distribute assets, but it requires probate and offers less control over distribution.
| Pros | Cons |
|---|---|
| Simple to create | Requires probate |
| Affordable option | Becomes public record |
| Names a guardian | Lump-sum distribution |
| Easy to modify | Limited asset protection |
What Is a Will Best For?
A will is a straightforward and affordable option for those with basic estate planning needs.
- Those with young children who need to name a guardian
- People with smaller, straightforward estates
- Those who don’t mind probate
What Is a Living Trust?
A living trust is a legal entity that holds your assets while you’re alive and distributes them after death according to your instructions. Unlike a will, a trust bypasses probate—allowing faster, private asset distribution.
Pros and Cons of a Living Trust
A living trust offers benefits like probate avoidance and privacy but comes with higher costs and maintenance requirements.
| Pros | Cons |
|---|---|
| Avoids probate | Higher upfront cost |
| Maintains privacy | Ongoing maintenance |
| Provides control | No guardianship provision |
| Protects against incapacity | More complex setup |
What Is a Living Trust Best For?
A living trust is ideal for those who want to avoid probate and maintain control over asset distribution.
- Larger estates ($100K+) that want to avoid probate
- Those with multiple properties or out-of-state assets
- Individuals who want more control over asset distribution
Differences Between a Living Trust and a Will
Understanding the key differences between a living trust and a will can help you determine which estate planning tool best fits your needs:
1. Scope
A living trust and a will both distribute assets, but they cover different aspects of your estate.
- Living Trust: Manages only the assets placed in the trust, such as property, bank accounts, and investments.
- Will: Covers nearly all assets you own and also allows you to designate guardians for dependents.
2. Setup Effort and Costs
The time, effort, and expenses required to establish a will or living trust vary significantly.
- Living Trust: Requires more legal work and asset transfers, with setup costs typically ranging from $1,500–$2,500.
- Will: Easier and cheaper to create, often costing around $300 or less with DIY options.
3. Effectiveness Timeline
A key distinction is when each document takes effect and how long it remains active.
- Living Trust: Effective immediately upon creation and continues even if you become incapacitated.
- Will: Becomes valid only after death, with the executor managing the estate through probate.
4. Ownership
The way assets are held differs between a will and a living trust.
- Living Trust: Requires transferring ownership of assets into the trust, meaning the trust becomes the legal owner.
- Will: You retain ownership of your assets until death, after which they are distributed according to your will.
5. Maintenance
Each option has different requirements for updates and ongoing management.
- Living Trust: Needs continuous management, including updating assets and handling trustee responsibilities.
- Will: Requires minimal maintenance—only occasional updates as life circumstances change.
6. Flexibility
While both documents can be updated, the process for doing so varies.
- Living Trust: Revocable trusts can be modified but require legal steps. Irrevocable trusts are difficult to change.
- Will: Easy to update at any time with a codicil (amendment) or by drafting a new will.
7. Taxes
A living trust can offer some tax benefits, while a will does not.
- Living Trust: Irrevocable trusts may reduce estate taxes but require careful planning.
- Will: Provides no estate tax benefits, and large estates may face federal and state estate taxes.
8. Probate
One of the biggest differences between a will and a living trust is how assets are processed after death.
- Living Trust: Avoids probate, allowing for faster and more private asset distribution.
- Will: Must go through probate, which can take 6–9 months or longer, depending on the complexity of the estate.
9. Privacy
Privacy is a major factor in estate planning, especially for those who prefer confidentiality.
- Living Trust: Remains private, with details known only to the trustee and beneficiaries.
- Will: Becomes a public record after probate, making financial details accessible.
Should You Choose a Will or a Living Trust?
Deciding between a will vs. living trust depends on your financial situation, family needs, and estate planning goals.
Choose a Will If:
- You have minor children and need to appoint a guardian
- You don’t own a lot of assets that would require probate
- You need a simple, affordable estate plan
Choose a Living Trust If:
- You own multiple properties or have a large estate
- You want to skip probate and keep your estate private
- You need detailed control over when and how assets are distributed
Can You Have Both?
Yes, many people use both a will and a living trust for a complete estate plan.
- The living trust handles major assets (homes, investments, etc.), avoiding probate.
- The will covers everything else, including naming a guardian for minor children.
Cost of a Living Trust vs. Will
The cost of setting up and maintaining a living trust is generally higher than that of a will. While a will is simpler and more affordable—often costing $0 to $300—a living trust requires legal setup and asset transfers, with fees ranging from $1,500 to $3,000. However, a living trust avoids probate, which can cost thousands of dollars in legal and court fees.
A will may be the most cost-effective option if your estate is small and straightforward. If you own multiple properties or want to avoid probate, a living trust may save your beneficiaries money in the long run.
| Expense Type | Living Trust | Will |
|---|---|---|
| Initial Setup | $1,500–$3,000 | $0–$300 |
| Ongoing Maintenance | $0–$500 per year | None |
| Probate Costs | None (avoids probate) | $1,500–$10,000+ |
Simplify Your Estate Planning
Creating a living trust or a will is an important step in protecting your assets and ensuring your wishes are followed. Legal Templates makes the process easy with customizable forms that you can create, edit, and download—helping you complete your estate plan efficiently and with confidence.
Frequently Asked Questions
What is a living trust on a house vs a will?
A living trust on a house transfers ownership of the home to the trust while you are alive, ensuring it avoids probate and is distributed according to your terms. A will, on the other hand, only directs who inherits the house after you pass, but it must go through probate first.
What is a revocable living trust vs will?
A revocable living trust allows you to transfer assets into a trust while keeping control over them during your lifetime. You can modify or revoke it at any time. A will, however, only takes effect after death and requires probate to distribute assets.
What is a living will vs living trust?
A living will is a legal document outlining your medical care preferences if you become incapacitated. A living trust is used to manage and distribute assets, helping avoid probate. They serve entirely different purposes in estate and healthcare planning.
