Living Trust vs. Will: Which Do You Need?

Living Trust vs. Will: Which Do You Need?

Both wills and living trusts are tools to transfer your assets after you die. But they work in fundamentally different ways — and the choice between them can save your loved ones significant time, money, and stress.

What Is a Last Will and Testament?

A last will and testament is a legal document that specifies: - Who inherits your property and assets - Who is responsible for settling your estate (the executor) - Who will care for your minor children (guardian designation)

A will only takes effect at death. It must go through probate — a court process of validating the will and overseeing distribution.

What Is a Living Trust?

A living trust (also called a revocable trust) is a legal entity you create during your lifetime. You transfer ownership of your assets (home, bank accounts, investments) into the trust, while typically naming yourself the trustee to maintain full control during your lifetime.

When you die, a named successor trustee distributes trust assets directly to your beneficiaries — without court involvement.

Key Differences

Probate Will: Goes through probate — a public court process that can take 6 months to 2+ years and eat up 2%–5% of the estate's value in fees.

Living Trust: Skips probate entirely. Assets transfer directly and privately.

Privacy Will: Wills become public record at probate. Anyone can look up your will and see exactly what you owned and who you gave it to.

Living Trust: Trust documents stay private. Only the trustee and beneficiaries need to know the details.

Minor Children Will: The only way to name guardians for minor children. A living trust cannot name guardians.

Living Trust: Cannot name guardians — you still need a "pour-over will" to catch any assets not transferred to the trust.

Cost and Complexity Will: Simpler and less expensive to create. An attorney-drafted will costs $300–$1,000+.

Living Trust: More complex — requires creating the trust document AND re-titling all your assets into the trust. If you forget to transfer assets, they may still go through probate. Attorney-drafted trusts cost $1,500–$3,000+.

Incapacity Planning Will: Only operates at death. If you're incapacitated, your will does nothing.

Living Trust: Allows seamless management of your assets if you become incapacitated — the successor trustee steps in without needing court intervention.

Out-of-State Property Will: If you own real estate in multiple states, your will may need to go through probate in each state.

Living Trust: Out-of-state real estate in the trust avoids ancillary probate proceedings.

When Is a Will Sufficient?

• You have a small estate (assets under your state's probate threshold — often $150,000–$200,000)
• Your assets are mostly held in beneficiary-designated accounts (retirement accounts, life insurance, joint tenancy real estate) that pass outside of probate anyway
• Simplicity and cost savings are priorities
• You need to designate guardians for minor children

When a Living Trust Makes More Sense

• You own significant real estate (especially in multiple states)
• You want to avoid the cost, time, and publicity of probate
• You want incapacity protection built in
• You have a blended family with complex inheritance intentions
• Privacy is important to you

The Bottom Line: Use Both

Most estate planning attorneys recommend using both: a living trust to hold major assets and avoid probate, plus a "pour-over will" that catches any assets not in the trust and names guardians for minor children.

Start with a solid last will and testament — it's the foundation of any estate plan. iRunDocs makes it easy to create a legally sound will tailored to your situation.