Will vs. Trust: What’s the Difference and Which One Is Right For You? (5 min read)

I get asked this question a lot. In fact, I feel this question is often what keeps people from moving forward with their estate planning because they are stuck on trying to decide between the two. Let’s walk through the basics so you can get a general understanding of the differences. This won’t provide all the details you will need, but it will help you better understand these options.

What’s a Will?

A will is pretty straightforward. It’s a legal document that spells out how you want your assets distributed after you pass away. Think of it as a set of instructions for your loved ones and the court. It gives you control, so you can:

✅ Name an executor (the person who carries out your wishes) ✅ Designate guardians for minor children ✅ Outline who gets what (property, money, personal items)

The catch is that a will has to go through a court process called probate. It is the court’s job to make sure your wishes are followed, and your property gets distributed the way you instructed. That sounds like a good thing, right? Unfortunately, the process can take months or even years, it can be costly (which eats into the estate’s value), and your estate becomes public record.

What’s a Revocable Living Trust?

This type of trust is similar to a will in that you provide instructions on how you want your property distributed, and you have a person who is named to carry out those instructions. The big difference, however, is the trust is a legal entity, and ownership of your assets is transferred from you to the trust.

While you can appoint someone else to manage the trust while you are alive, many people choose to name themselves so they can keep control. You are then considered to be the trustee. When you pass away, your successor trustee takes over and distributes your property to your beneficiaries according to the instructions you provided.  

One of the biggest benefits that entices people to consider having a revocable trust is that it allows your successor trustee to distribute your property without the court’s involvement. This means no probate costs and delays. Plus, the details of the trust remain private. This can certainly make for a much faster and often less stressful situation for your loved ones.

Other Types of Trusts

There are many other different types of trusts in addition to the one discussed above. In fact, there are too many to list, so I’ll cover just a few of the more common ones and typically why they are used.

✅ Irrevocable Trust

• Unlike the revocable trust, once this type of trust is created, it can’t easily be changed.

• But it offers benefits the revocable trust doesn’t - it is often used for asset protection and estate tax reduction.

• Since the assets are no longer in your name, they’re protected from creditors and estate taxes.

✅ Testamentary Trust

This type of trust is created as part of your will and only takes effect after you die. Basically, your will includes instructions for the trust and the trust is set up after you pass away. Unlike a revocable living trust, which is set up during your lifetime and avoids probate, a testamentary trust must go through probate because it is tied to your will. So why would someone choose this option?

• ✔ Cost Considerations: Setting up a testamentary trust is typically less expensive upfront than a revocable living trust. If avoiding probate isn’t a top concern, this could be a cost-effective choice.

•   ✔ Control Over Distributions: This trust allows you to control when and how assets are distributed. For example, you can specify that a child receives half their inheritance at 25 and the rest at 35.

•   ✔ Beneficial for Minor Children & Dependents: Since minors cannot legally inherit outright, a testamentary trust ensures their inheritance is managed responsibly until they reach the age you choose.

While this trust offers a way to manage and distribute assets over time, it still requires probate, meaning it can take longer for beneficiaries to receive their inheritance. If avoiding probate is a priority, a revocable living trust may be a better choice.

✅ Special Needs Trust

• This trust is used to provide financial support for a loved one with disabilities without affecting their eligibility for government benefits.

• It ensures funds are used to improve their quality of life.

• There are two types: one created within a testamentary trust (which takes effect after death and goes through probate) and a stand-alone Special Needs Trust (set up separately from your will).

• A stand-alone trust offers additional control and benefits, including the ability to provide financial support while you are still living, maintaining eligibility for government benefits, and avoiding probate when you pass.

✅ Charitable Trust

As the name implies, this type of trust is designed to give assets to a charity. However, you don’t necessarily need a trust to make charitable gifts – there are different ways to include charitable giving in your estate plan.

1.    Naming a Charity in Your Will

• You can simply designate a charity as a beneficiary in your will, specifying a set amount, a percentage of your estate, or particular assets (such as real estate or investments).

• This is a straightforward and cost-effective way to leave a legacy without setting up a separate trust.

• However, because wills go through probate, the donation may be delayed before the charity receives the funds.

2.    Charitable Trusts (for More Structure & Tax Benefits)

• A charitable trust is a more structured way to give, often providing tax advantages and greater control over how and when the charity receives assets.

• There are two common types:

✅ Charitable Remainder Trust (CRT)

• You transfer assets into the trust and can receive income from those assets during your lifetime.

• Upon your passing (or after a set number of years), the remaining assets go to the charity.

• This option can reduce estate and capital gains taxes while providing lifetime income.

✅ Charitable Lead Trust (CLT)

• Works in the reverse of a CRT—the charity receives income from the trust for a set period, and after that time, the remaining assets pass to your heirs.

• It can be used to support a charity while minimizing estate taxes for your beneficiaries.

Which Option Is Right for You?

✔ If you simply want to leave a charitable gift after your passing, naming a charity in your will may be sufficient.
✔ If you want to provide ongoing support to a charity while also benefiting from tax savings or income options, a charitable trust might be the better choice.

Since charitable trusts involve complex tax considerations, it’s always best to work with an estate planning attorney and financial advisor to determine the best strategy for your goals.

Cost Differences Between a Will and a Trust

You, like many others, may already know that it’s going to cost more to set up a trust than it is to create a will. The cost difference will vary depending on the attorney, however, I can give you a general idea of what to expect.

• Wills are generally anywhere from $300 to $1,000 depending on complexity and location.

• Trusts require more upfront work and legal advice, so they can cost anywhere from $1,500 to $5,000 or more. However, the long-term savings (by avoiding probate) and the benefits of privacy and control can outweigh the initial cost.

How Do You Decide Which One You Need?

Cost aside, there are differences between a will and a trust that may lead you towards one or the other, depending on your needs. Here’s a quick guide to give you an idea of what I mean:

1. Do you own real property, such as a house or land?

➡️ Yes → Go to Question 2

➡️ No → A Will may be enough

2. Is it important for you to avoid probate?

➡️ Yes → A Trust might be better. This is especially true if you own property in multiple states, and want to avoid having probate in each state after your death.

➡️ No → A Will may be enough

3. Do you have minor children or dependents?

➡️ Yes → You need a Will to name guardians for their care and/or a conservator if they are to be a beneficiary.

➡️ No → Go to Question 4

4. Do you want to control how and when your heirs receive their inheritance?

➡️ Yes → A Trust will give you more control

➡️ No → A Will may be enough

5. Are you concerned about protecting assets from creditors or reducing estate taxes?

➡️ Yes → An Irrevocable Trust could help with this

➡️ No → A Revocable Trust or Will may be enough

Final Thoughts

Deciding between a will or a trust can be challenging depending on your situation. The good news? You don’t have to pick one or the other—you can have both. Many people use a trust for larger assets, like property, and a will to cover personal items and name guardians for kids. Since everyone’s situation is unique, consulting with an estate planning attorney is the best way to figure out what works best for your situation, meeting your needs and protecting your loved ones. Knowing ahead of time what your goals are and what questions you have goes a long way in saving you time and money. I hope this article helped with that!