Estate planning is one of the most deferred financial tasks in America. A 2024 survey by Caring.com found that fewer than 35% of American adults have a valid will. For most people, the question is not whether to plan their estate but which tool — a will, a trust, or both — is appropriate for their situation. Getting this wrong can leave your family in an expensive, public, and time-consuming process after you die.
What Is a Will?
A last will and testament is a legal document that expresses your wishes for how your assets should be distributed after your death. It names beneficiaries for your property, names a guardian for minor children, and designates an executor (the person who carries out the will’s instructions). A will becomes effective only at death and must go through probate — the court-supervised process of validating the will and distributing assets.
Wills are public record once they enter probate. They can be contested by heirs, and probate can take months to years depending on the estate’s complexity and jurisdiction. Despite these limitations, a will is better than no plan, and for simple estates, it is often sufficient.
What Is a Trust?
A trust is a legal entity that holds assets on behalf of beneficiaries. A revocable living trust — the most common type used in personal estate planning — is created during your lifetime, funded by transferring ownership of your assets into the trust, and managed by you (as trustee) until your death or incapacity, at which point a successor trustee takes over and distributes assets per your instructions.
The key advantage of a revocable living trust is that it avoids probate entirely. Assets held in the trust transfer directly to beneficiaries without court involvement, often within weeks rather than months or years. Trusts are also private — unlike a will, a trust document does not become public record.
Key Differences at a Glance
- Probate: Wills require probate. Trusts avoid it.
- Privacy: Wills are public record. Trusts are private.
- Speed: Wills can take 6 to 18 months to settle. Trusts typically settle in weeks.
- Cost to settle: Probate can cost 3% to 7% of the estate’s value in attorney and court fees. Trusts typically cost less at settlement.
- Cost to create: A simple will costs $100 to $500. A revocable living trust typically costs $1,500 to $3,000 through an attorney, or $300 to $700 through online services.
- Incapacity planning: Trusts manage assets seamlessly if you become incapacitated. Wills only take effect at death — incapacity requires a separate power of attorney.
- Asset funding: Trusts must be funded — you must retitle assets into the trust’s name. This is often overlooked and a major failure point.
Do You Need Both?
Yes, in most cases. Even with a trust, you need what is called a “pour-over will” — a simple will that catches any assets you forgot to fund into the trust and directs them into it at death. The pour-over will still goes through probate for unfunded assets, but the trust covers the bulk of your estate.
When a Will Alone May Be Enough
A will is typically sufficient if your estate is small and simple, you live in a state with simplified or small estate probate procedures, your assets have named beneficiaries (like IRAs, 401(k)s, and life insurance — which pass outside of probate regardless), and you are not concerned about privacy.
When a Trust Makes Sense
A trust is worth the additional cost and complexity if your estate is large or complex, you own real estate in multiple states (each state requires a separate probate), you want to control how and when beneficiaries receive assets (particularly for minors or financially irresponsible heirs), you have privacy concerns, or you want to avoid probate to protect your family from a lengthy, costly process.
Other Documents You Need Regardless
A complete estate plan includes:
- Durable power of attorney — authorizes someone to handle financial matters if you become incapacitated
- Healthcare proxy / medical power of attorney — designates someone to make medical decisions on your behalf
- Living will / advance directive — documents your wishes for end-of-life medical care
The Bottom Line
For most families, a revocable living trust combined with a pour-over will, durable power of attorney, and healthcare directive represents the most complete estate plan. A will alone is a reasonable starting point for young adults with simple finances. Either way, having a plan is dramatically better than having none — and the cost of creating one is trivial compared to the cost of dying without one.
For context on how estate planning intersects with retirement accounts, see our guide to what a traditional IRA is. For another estate planning tool used by higher-net-worth families, see what a living trust is.
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