Why this comparison matters

Choosing between a will and a trust is one of the most important decisions in estate planning. The choice affects how quickly heirs receive assets, whether assets pass through probate court, ongoing management for dependents or disabled beneficiaries, and potential interactions with taxes and creditor claims. In my 15+ years as a Certified Financial Planner (CFP®), I’ve seen both simple and complex estates benefit from a thoughtful mix of these tools.

Core differences at a glance

  • Purpose: A will declares how assets titled in your name are distributed at death and names executors and guardians. A trust holds title to assets and sets rules for how those assets are managed and distributed, often both during life and after death.
  • Probate: Wills typically require probate to transfer assets that are solely in your name. A properly funded revocable living trust usually avoids probate for the assets it owns.
  • Control and timing: Trusts can stagger distributions, provide for minors or special needs, and set conditions that continue after death. Wills generally produce immediate transfers (subject to probate) with fewer post-death conditions.
  • Privacy: Probate is a public court process. Trust administration is usually private.
  • Cost and complexity: Wills are cheaper and simpler to create. Trusts cost more up-front and require ongoing administration and funding.

(For details on how beneficiary designations can override wills, see How Beneficiary Designations Interact with Your Will: https://finhelp.io/glossary/how-beneficiary-designations-interact-with-your-will/.)

Types of wills and trusts (brief)

  • Simple will: Directs assets and names an executor and guardians for minor children.
  • Testamentary trust: Created inside a will; it takes effect only after probate.
  • Revocable living trust: You control it while alive and can change or revoke it; helps avoid probate.
  • Irrevocable trust: Transfers assets out of your estate for tax, creditor, or Medicaid planning; harder to change.
  • Special needs trust: Protects benefits for disabled beneficiaries while providing supplemental support.

Probate and why people care

Probate is the court-supervised process that validates a will, pays debts, and distributes assets. It can take months to years, depending on complexity and state law, and it can generate legal fees and court costs. Avoiding or minimizing probate is a common reason clients choose trusts or use beneficiary titles on accounts.

For an overview of probate and avoidance strategies, see Probate and Probate-Avoidance resources: https://finhelp.io/glossary/probate/ and https://finhelp.io/glossary/probate-avoidance-techniques-for-faster-estate-settlement/.

When a will makes sense

  • Your estate is simple: assets mostly pass through beneficiary designations (IRAs, 401(k)s), joint ownership, or small in size.
  • You need to name guardians for minor children or detail funeral wishes.
  • You prefer a lower-cost initial solution and are comfortable with the probate timeline.

Practical example: A young couple with modest assets and a child often need a simple will to name guardianship and an executor—this is efficient and clear.

When a trust makes sense

  • You own real estate in your name alone and want to avoid probate for those properties.
  • You want ongoing management for a beneficiary (minors, someone with special needs, or an heir who shouldn’t receive a lump sum).
  • You have complex family dynamics or blended families and want precise distribution rules.
  • You face potential estate tax exposure or want asset protection goals that a specialized irrevocable trust can support.

Real-world example: I helped a client create a revocable living trust to hold rental real estate and brokerage accounts. After they died, the trust allowed a trustee to smoothly manage rental collections for a surviving spouse and distribute proceeds to children without a public probate process.

Funding matters: a trust is only as good as the funding

A common pitfall is creating a trust and failing to retitle assets into it. To be effective, a trust must own the assets it’s meant to control—this includes real estate deeds, bank and brokerage accounts, and other titled property. Retirement accounts, like IRAs and 401(k)s, typically pass via beneficiary designation forms and often should remain titled to the account owner with a named beneficiary rather than being transferred into a trust (consult an attorney; tax and distribution rules differ).

See our guide on Titling and Beneficiary Coordination to Avoid Probate Surprises: https://finhelp.io/glossary/titling-and-beneficiary-coordination-to-avoid-probate-surprises/.

Taxes: general considerations (not legal tax advice)

  • Federal estate tax: Current federal rules and exemption levels can change. Under the law in effect during 2025, estate and gift tax exemptions remain elevated relative to historical levels, but scheduled changes may affect those thresholds in future years. For current federal guidance, consult the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/estate-and-gift-taxes.
  • Income tax: Trusts can have different income-tax filing and rate consequences. Irrevocable trusts in particular may face compressed tax brackets.
  • State taxes: Several states have their own estate or inheritance taxes with varying exemption levels.

Because tax law changes and state rules differ, work with a tax advisor or estate attorney when trusts are used for tax planning.

Practical checklist to choose between a will and a trust

  1. List your assets and how each is titled (joint, individual, beneficiary-named).
  2. Identify immediate needs: guardianship, small cash bequests, funeral instructions.
  3. Identify ongoing needs: special needs, spendthrift protection, business succession.
  4. Consider privacy and timing: do you want to keep transfers out of public court?
  5. Assess cost tolerance: do you prefer lower up-front cost (will) or paying for probate avoidance and control (trust)?
  6. Coordinate beneficiary forms and deeds—these often override or bypass wills.

Common mistakes I see in practice

  • Assuming a will controls all assets: beneficiary designations, joint ownership, and some contracts bypass wills. Always audit titles.
  • Creating but not funding a trust: it renders the trust ineffective for certain assets.
  • Failing to update documents after major life events: marriage, divorce, births, deaths, or changes in state residency.
  • Not coordinating tax, legal, and financial advice. Estate planning should be integrated across disciplines.

Steps to get started

  1. Gather a list of assets, titles, beneficiary forms, and debts.
  2. Decide immediate priorities (guardianship, liquidity needs for funeral/estate taxes).
  3. Consult a licensed estate planning attorney in your state—estate law is state-specific and legal documents must meet local requirements.
  4. If appropriate, work with a CFP® or financial advisor to retitle accounts, fund trusts, and align investment and insurance plans.

For practical drafting and trustee/executor preparation tips, see Executor Duties and How to Prepare Your Trustee: https://finhelp.io/glossary/executor-duties-and-how-to-prepare-your-trustee/.

FAQs (brief)

  • Can I have both a will and a trust? Yes. Many people use a will as a fallback (a “pour-over” will that sends any overlooked assets into a trust) while using a trust to manage most assets.
  • Will a trust save taxes? Not always. Revocable living trusts mainly avoid probate and offer control; irrevocable trusts and specialized trusts can support tax planning but require careful legal and tax work.
  • Do trusts eliminate court involvement completely? A properly funded revocable trust avoids probate for the assets it owns, but some situations (creditor claims, contested trust validity) can still result in litigation.

Sources and authority

This article is educational and based on professional experience as a CFP®; it is not legal advice. For document creation or tax planning, consult a licensed estate planning attorney and a tax professional familiar with your state’s rules and current federal law.