Which is better, a trust or will?

Neither a trust nor will is necessarily better as it really depends on your specific financial situation. That said, a trust provides more flexibility compared to a will in that it allows for more detailed and conditional distribution of assets over time, and it can also help you avoid probate.

Can a will override a trust?

Generally speaking, a trust takes precedence over a will should any conflicts arise since assets held in a trust are usually not considered part of your estate. If your will includes instructions for assets not yet placed into a trust, however, these are handled per local inheritance laws.

When do a will and trust take effect?

A will takes effect upon your passing, whereas a trust takes effect as soon as you sign on the dotted line.

Will or living trust: Which do you need?

One key component of financial planning is leaving a legacy, ensuring assets are smoothly transferred to heirs upon your death and/or mental incapacitation. Various tools can help you accomplish this, two of which we’ll review here today: wills and trusts. Let’s dive in…

What is a will?

A will, also known as a last will and testament, is simply a legal document that outlines your wishes regarding the distribution of estate assets upon your death or incapacitation.

A will typically includes the appointment of an executor responsible for carrying out the wishes specified in the document (if you don’t name an executor, the court will assign one for you). You can also use your will to designate a guardian for minor children—with guardianship provisions detailed to ensure your children's care—and provide instructions on how and when named beneficiaries will receive their assets.

What is a trust?

A trust, meanwhile, is a legal arrangement that allows a trustee (an appointed individual or entity such as a bank or trust company) to manage assets and oversee their distribution to beneficiaries upon your passing and is formally established through a trust document—which outlines the terms and management of trust assets per the grantor's wishes. While many types of trusts exist, all fall within two categories: living and testamentary.

Living trusts

Living trusts are classified as either revocable living trusts (i.e., a revocable trust or trusts) or irrevocable trusts.

Revocable trusts

A revocable trust is established and managed during the grantor's lifetime and can be modified or revoked as the grantor retains ownership of property or assets.

Irrevocable trusts

In contrast, irrevocable trusts are not easily changed; once established, the trustor relinquishes control of assets to the trust itself, which then assumes ownership. Irrevocable trusts are typically created to decrease the value of an estate, qualify for Medicaid or similar income-restricted programs, and/or minimize estate taxes: offering specific tax benefits and long-term financial implications.

Both types of living trusts become effective on the day they’re signed and are used to transfer assets to beneficiaries.

Testamentary trusts

In contrast, a testamentary trust—also known as a “will trust” or “trust under will”—is created by an estate executor as part of your last will and testament and goes into effect only after the will is probated and the executor has settled the estate. These types of trusts are commonly used to name minors as beneficiaries, with the deceased’s assets paid out only after the children reach a certain age.

What are the main differences between a trust and a will?

Several key differences between these two estate-planning tools include…

Probate

One of the biggest differences between a will and a trust is the probate process. Wills must go through probate in probate court, but if you have a will at the time of your death, the probate process is generally more streamlined than when someone dies intestate (i.e., without a will). In contrast, living trusts don’t require probate for your assets—bypassing this entirely—saving your heirs both time and money. This is not the case for assets solely in your name when you pass away, which do require probate unless they’re held in a trust or transferred by other means.

Will contestation

Another key difference between the two documents is that a will can be contested in court whereas trusts generally cannot, with the former often challenged if a family member, friend, or business partner believes he/she was wrongfully disinherited or disagrees with estate distribution. The person contesting the will, however, must have legal standing to do so: perhaps claiming the testator (the person who made the will) lacked mental competence, laws were broken during will creation, or a more recent version of the will exists. State law determines the specific procedures and requirements for contestation.

A trust, meanwhile, can indeed help avoid the aforementioned complications. For example, a revocable living trust allows you to designate a trustee to manage your assets: ensuring your estate is protected in the event you become incapacitated and cannot handle your affairs. This level of protection isn’t available with a will alone and requires a durable power of attorney, a legal document authorizing the person of your choice to make legal decisions on your behalf should you become incapacitated or unable to act for yourself.

Financial privacy

If you’re concerned about keeping your estate affairs private, a living trust is beneficial as it won’t become a public document after your death—unlike a will, which becomes part of the public record post-probate. Nevertheless, public record disclosure may still occur with some trusts due to specific legal or tax filings.

Detailed control

Furthermore, a living trust can continue to operate after your passing as you can direct your trustee to hold assets until a beneficiary reaches a specific age/milestone or experiences a life-changing event (e.g., a marriage). Conversely, assets are typically distributed soon after your death if you have a will.

Potential tax savings

Another key difference is the potential for estate tax savings. By transferring assets into a trust, you can sometimes reduce the taxable value of your estate to help minimize federal and state estate taxes for larger estates: a major benefit for individuals with significant assets or those concerned about estate tax liability.

Cost

A final differentiating point is the associated price tag. While you can easily create a basic will for under a few hundred dollars, you typically need to shell out at least $1,000 for a trust if you decide to enlist the help of an estate planning attorney. Contrary to popular belief, a revocable living trust may not save a significant amount of money compared to a will since the upfront expenses are often higher (and probate savings often minimal).

Will vs. trust: how to choose

Important will considerations

First and foremost, those with assets worth more than their state’s probate threshold (varies by state) and/or minor children should have a will to help expedite the probate process and ensure assets are distributed per their wishes.

Comprehensive estate plans

Consider developing a comprehensive estate plan incorporating both wills and trusts, thus ensuring your assets are managed and transferred per your intentions.

When to consider a trust

There are several scenarios where establishing a trust may be beneficial in order to:

Leave assets to minor children

Trusts allow you to set specific conditions for when and how minor children procure their inheritance, rather than simply receiving a lump sum upon reaching adulthood. You can set the age at which they can access funds or link distributions to milestones (e.g., college graduation).

Protect inheritances from divorce

A trust can safeguard children’s inheritances from potential issues associated with divorce. While inherited assets are considered separate property in most cases, commingling—placing inherited funds in a joint account or co-investing in property—can alter this status. Trusts help ensure these assets remain separate and don’t become marital property.

Care for special needs children

If you have a child with special needs, setting up a special needs trust is often a wise choice so he or she can utilize assets without affecting government benefits eligibility: providing financial support while still accessing public assistance.

Manage assets in case of incapacity

For those at high risk of incapacity, a revocable living trust provides a responsible way to manage assets to ensure they’re handled per your wishes (even if you can’t manage them yourself).

Manage larger estates

Individuals with larger (or more complex) estates may find trusts offer significant benefits such as avoiding federal or state estate taxes and facilitating efficient asset distribution. As of 2026, federal estate tax impacts assets exceeding $15,000,000 with some states imposing taxes on amounts as low as $1 million.

Considerations for married couples

Married couples should pay special attention to how their assets are titled as well as beneficiary designations, knowing proper planning can simplify asset transfer and reduce the need for probate. Typically, a surviving spouse inherits the estate before other heirs—with it possibly reverting to the state if no other heirs exist.

Trust security and privacy

Finally, you generally cannot contest a trust in court—providing greater security for your estate—with trusts also offering more privacy since they don’t become public documents like wills (as previously mentioned). If privacy and security are important to you, creating a trust is often a valuable option.

In weighing these factors, you can make informed decisions about whether to utilize a will, a trust, or a combination of both to manage your estate most effectively.

Other considerations regarding wills and trusts

Keep in mind that having a trust shouldn’t preclude you from creating a will, which quite frankly does things a trust cannot (e.g., naming a guardian for minor children). A living trust should also never include all of your assets; for example, it’s often recommended to not include qualified retirement accounts (e.g., 401(k) or IRA funds) in a trust account, as such an activity is considered a complete withdrawal of those funds and thus subject to tax.

In sum: deciding on a will or trust for your estate plan

So, which is better: a will or trust? The answer ultimately depends on your own personal situation. Almost everyone should have a will, but if your net worth is greater than $100,000, you have minor children, and you want to spare your heirs the hassle of probate and/or keep estate details private, consider adding a trust to the mix. Either which way, you can seek guidance from a professional—such as a financial advisor—to make the process that much easier.

Have questions about estate planning? Schedule a free consultation with one of our CFP® professionals to get them answered.

FAQs

Neither a trust nor will is necessarily better as it really depends on your specific financial situation. That said, a trust provides more flexibility compared to a will in that it allows for more detailed and conditional distribution of assets over time, and it can also help you avoid probate.
Generally speaking, a trust takes precedence over a will should any conflicts arise since assets held in a trust are usually not considered part of your estate. If your will includes instructions for assets not yet placed into a trust, however, these are handled per local inheritance laws.
A will takes effect upon your passing, whereas a trust takes effect as soon as you sign on the dotted line.

About the author
The content in this post was developed by our team of writers and reviewed by our team of CFP® professionals here at Vision Retirement.

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Will or Living Trust: Which Do You Need?