Will vs living trust: which one do you need?

Both pass your property to the people you choose. A will is simpler and cheaper; a living trust avoids probate and covers incapacity. Many families end up with both.

Edited by Erik Bobbink, CFA · Last reviewed October 2026 · General information, not legal advice

Key facts

  • A will takes effect at death and usually has to go through probate.
  • A funded living trust passes assets without probate and can cover incapacity.
  • A will is the usual place to name guardians for your minor children; a trust does not do this.
  • If you create a living trust, you still sign a short pour-over will.
  • A trust costs more up front, and you have to move assets into it.

Side-by-side comparison

WillRevocable living trust
Takes effectAt deathWhen signed and funded
ProbateUsually required for property in your name aloneNot required for property held in the trust
PrivacyPublic once filed with the courtGenerally private
If you become incapacitatedNo help; a power of attorney is neededSuccessor trustee manages trust assets
Guardians for minor childrenYesNo
Property in other statesMay need a probate case in each stateNo extra probate for trust property
Typical cost$0 to $399 online; often about $1,000 with an attorney$149 to $649 online; $1,500 to $4,000 with an attorney
UpkeepUpdate after major life eventsSame, plus titling new assets in the trust

How a will works

A will is a signed document that says who receives your property, who settles your estate (the executor) and who should raise your minor children. It does nothing until you die. Then the executor usually files it with the probate court, which supervises paying debts and distributing what is left.

Some assets bypass the will entirely: retirement accounts and life insurance go to the beneficiaries named on them, and jointly owned property with survivorship rights passes to the surviving owner. See how to avoid probate.

How a living trust works

A living trust holds your property during your life. You usually manage it yourself as trustee, and a successor trustee you choose takes over if you become incapacitated or die. Property titled in the trust’s name passes to your beneficiaries without probate, as long as you fund the trust.

What happens at death with each

With a will

  1. The executor files the will with the probate court and asks to be appointed.
  2. Heirs and creditors are notified, and creditors get a set period to file claims.
  3. The executor inventories the assets, pays debts and taxes, and reports to the court where required.
  4. The court approves the distribution and closes the estate, often 6 to 12 months later, and longer in some states.

With a funded living trust

  1. The successor trustee takes over using the trust document and a death certificate, with no court appointment.
  2. The trustee notifies beneficiaries, gathers the trust assets and pays final bills and taxes.
  3. The trustee distributes the property as the trust directs, outright or in stages.

Either way, someone has to do the work. The difference is that a trust settles privately, without court deadlines, filing fees or court approval of each step. Read what probate involves.

When a will is enough

  • You rent, or your home already passes outside probate, for example by transfer-on-death deed or joint ownership.
  • Your savings are modest and mostly in accounts with named beneficiaries.
  • Your estate would qualify for your state’s small estate procedure.
  • Your main goal right now is naming a guardian for young children.

When a living trust is better

  • You own a home, or property in more than one state.
  • You want a plan that works if you become unable to manage your affairs.
  • You want to control when beneficiaries receive money, for example in stages.
  • You have a blended family or expect disagreements.
  • You would rather keep your estate out of the public record.

Still on the fence? The living trust quiz weighs these factors for you in two minutes.

Three example families

Renting couple with a toddler

No real estate, retirement accounts with named beneficiaries and modest savings. Wills that name a guardian, plus up-to-date beneficiary designations, cover the essentials. A trust can wait until they buy a home.

Homeowners in California

Their home is their largest asset. California sets probate fees by law, and on a $500,000 estate the attorney and the executor are each entitled to $13,000. A funded living trust usually costs far less.

Blended family, homes in two states

Children from earlier marriages and a vacation home in another state. A living trust avoids a second probate case and spells out who inherits what. An attorney should draft it.

Common myths

  • “A will avoids probate.” It does not. Property that passes under a will generally goes through probate.
  • “A living trust cuts estate tax.” A revocable trust does not change your estate tax. The federal estate tax only applies above $15 million per person in 2026.
  • “A trust protects my assets from creditors.” Not a revocable trust, because you can take the property back at any time.
  • “Once I sign the trust, I’m done.” Only assets you move into the trust avoid probate. See how to fund a living trust.
  • “Trusts are only for the wealthy.” Homeowners in states with slow or costly probate often benefit the most.

Why many people use both

People with a living trust still sign a pour-over will. It sends anything left outside the trust into it at death and names guardians for minor children. Most trust packages also include a financial power of attorney and a health care directive, so your plan covers incapacity for assets outside the trust and for medical decisions.

See which fits your family

Six questions point you to a will, a living trust or an attorney.

Take the quiz

FAQ

Is a living trust better than a will?

Not for everyone. A trust does more, avoiding probate and covering incapacity, but costs more and needs funding. For a renter with modest savings and named beneficiaries, a will is often enough.

Can a will or a trust be contested?

Both can be challenged in court, for example on grounds of lack of capacity, undue influence or improper signing. Clear documents, signed properly and updated over time, reduce the risk.

Do I need a will if all my assets are in a trust?

Yes. Assets you acquire later or forget to retitle need a pour-over will to reach the trust, and a will is the usual place to name a guardian for minor children.

Which costs less over time, a will or a trust?

A will costs less to create. A trust can cost less overall if it keeps your estate out of probate, which is often estimated at 3% to 7% of the estate’s value. The answer depends on your state, your assets and how much of them already pass by beneficiary designation.

Can I change a will or a living trust later?

Yes. You can update a will with a codicil or replace it, and you can amend or restate a revocable living trust at any time while you have capacity.

Sources

OakTrust.com provides general information, not legal advice. Laws vary by state. For advice on your situation, talk to an attorney licensed in your state.