Living Trust vs. Will: What's the Difference?

A will and a living trust are the two main tools people use to pass on what they own after death. Both let you name who inherits your property, but they work very differently and offer different protections. Here's how they stack up, and how to decide what you actually need.

This overview was checked by attorney Jeff Burtka.

In this article:

• What is a will, exactly?
• What is a living trust?
• How a living trust and a will differ
• What a living trust or will can't do
• Do you need a will, a living trust, or both?
• What happens if you have neither?
• Getting help

What is a will, exactly?

Even if a living trust makes sense for you, you'll likely still want a will too — if only to name an executor, name guardians for young children, and catch any property that never made it into the trust.

A will is a fairly simple document that spells out what happens to your belongings after you die. You can also use it to name guardians for minor children, appoint an executor, forgive debts owed to you, and specify how your taxes should be paid. After you're gone, your executor settles debts and taxes, then hands out what's left according to the will's instructions. That whole process runs through the courts and is called probate — a system with a reputation for being slow and costly.

What is a living trust?

Like a will, a living trust lets you name beneficiaries for your property. Beyond that, the two documents part ways. A trust's defining feature is that it puts a trustee in charge of managing and distributing trust property after you die, standing in for both the executor and the probate court.

Property held in a trust skips probate entirely, which can save your family time and money — often the whole reason people set one up. The tradeoff is that trusts are generally more complicated and more expensive to create and maintain than a will. A trust also can't name an executor or guardians for young children, so even with a trust, you still need a will to cover those bases. In fact, most people who have a living trust have a will as well.

How a living trust and a will differ

The table below sums up the main differences. Details on each point follow underneath.

Name beneficiaries for property. Naming beneficiaries is the core job of both documents. With a will, you list the property and say who gets it. With a trust, you have to do that and also formally move, or "transfer," the property into the trust — more on that below.

Leave property to young children. Aside from items of little value, children under 18 generally can't own property outright. Anything left to a minor needs an adult managing it, at least until the child turns 18.

Through a living trust, the trustee holds and manages that property until the child reaches whatever age you've specified.

Through a will, you need to name an adult to manage the property yourself, or set up a testamentary trust within the will, or name a custodian under the Uniform Transfer to Minors Act. See Leaving an Inheritance for Children for more on these options. Skip this step, and a court will appoint someone after you die.

Revise your document. Both a revocable living trust and a will can be updated whenever your circumstances or wishes change. Nothing is locked in until you die.

(The exception is an irrevocable trust, which can't be changed once it's finalized. These are mainly used by wealthy people or institutions to shield money from taxes or creditors, and they're considerably more complex than a revocable trust. Talk to a lawyer if you're considering one.)

Avoid probate. Property in a living trust bypasses probate. Property left through a will does not.

Probate is the court process for closing out someone's affairs after death. It tends to run long, can get expensive, and for many estates isn't even necessary. Read more about avoiding probate in Why Avoid Probate?

Because trust property skips court oversight, it can pass to beneficiaries after the trust-maker's death without fees or court involvement — or court guidance, for that matter. That's the main reason many people set up a living trust. Read more about How Living Trusts Avoid Probate.

Still, avoiding probate isn't a universal need. If you don't own much, or you're carrying significant debt, setting up a trust might not be worth it. See "Do you need a will, a living trust, or both?" below.

Keep privacy after death. A will becomes part of the public record once you die. A trust doesn't, which is why some people use one specifically to keep their affairs private. Read more about this in Is a Living Trust Public?

Requires a notary public. Rules for signing a will or trust vary by state, so the specifics depend on where you live. Generally, a trust needs notarizing, while a will doesn't (though it does need two witnesses). That said, most states let you make a will "self-proving" by having it notarized, which simplifies probate since the court usually won't need the witnesses to appear in person.

Requires transfer of property before death. Leaving something through a living trust means moving it into the trust while you're still alive. For many possessions, that's as simple as listing them on an attachment to the trust document. Items with formal title, such as real estate, need to be retitled in the trust's name — an extra step, though usually not a difficult one. A will requires no such transfer beforehand.

Protection from court challenges. Legal challenges to either document are uncommon. But when one does happen, courts generally find it harder to successfully overturn a living trust than a will. Read more about this in Other Advantages of Living Trusts.

Avoid a conservatorship. A living trust lets you name a spouse, partner, child, or other trusted person to take over trust property if you become incapacitated. A will can't do this. You can, however, sign a durable power of attorney to hand someone that authority separately. Skip both, and if you lose capacity, a probate court will need to appoint a conservator — sometimes called a property guardian — to manage your finances for you. Read more about this in Other Advantages of Living Trusts.

Name guardians for children. A will lets you name guardians for your minor children. A trust can't. Read more about Guardianships for Your Children.

Name property managers for children's property. A will lets you name someone to oversee property your children inherit or earn. A trust can't name that kind of manager directly, but it can name a trustee to handle trust property that will eventually pass to your kids.

Name an executor. Your will names an executor — the person who winds down your estate after you die, dealing with the court, paying bills, and eventually distributing whatever passes through probate. A trust can't name an executor; instead, it names a successor trustee, who oversees only trust property. Because nearly every estate needs an executor in some capacity, it's worth making a will and naming one even if most of your property flows through a trust. In most cases, it also makes sense to name the same person for both roles.

To learn more about an executor's job, see What Does an Executor Do?

Instruct how taxes and debts should be paid. Your will can leave instructions on how debts and taxes should be settled — for instance, directing that a loan from your brother be repaid out of your savings account. You can also use it to forgive debts owed to you. A living trust isn't the place for these instructions.

Simple to make. Wills don't require any particular wording, and while an attorney-drafted will can get elaborate, the law doesn't demand that. Some states even accept handwritten wills. There's no law forcing a living trust to be complicated either, but because it has to spell out the trustee's duties, it usually ends up longer and pricier to draft than a will. And once it's made, you still face the extra step of transferring property into it, as described above.

Requires witnesses. Signing a will takes you plus two witnesses — people who aren't set to inherit anything under it. A living trust skips witnesses; instead, you sign it in front of a notary public.

What a living trust or will can't do

Reduce estate taxes. Neither document lowers your estate tax bill, though most estates won't owe estate tax to begin with. Find out whether yours might in this overview of estate taxes.

Leave money to pets. Animals can't legally own property, so you can't leave money directly to a pet through either document. What you can do is name a trusted caretaker to take the pet, or set up a pet trust to fund its ongoing care. Try to leave property "to" your pet directly, and it will simply fall into your residuary estate. Learn more about caring for your pet after you die.

Leave final wishes. You're allowed to include funeral instructions and other final wishes in a will (never in a trust), but it's better to keep them in a separate document instead. Read more in Final Arrangements FAQ.

Leave passwords for online accounts. Your executor will eventually need access to your accounts, computers, and other devices, but a will or trust is the wrong place to store that information, since both can become part of a record others may see. Keep login details in a separate, secure document alongside your other estate planning paperwork. Read more in Access to Online Accounts.

Do you need a will, a living trust, or both?

Nearly everyone benefits from having a will. A living trust is optional, and whether you need one depends on your age, how much you own, and whether you're married. Read more about Why You Might Not Need a Living Trust.

Even if a trust makes sense for you, you'll probably still want a will — to name an executor, name guardians for minor children, and catch any property that doesn't end up in the trust. Read more about why You Still Need a Will.

What happens if you have neither?

Die without a will or a trust, and your state's intestacy laws decide who gets your property. Those laws send your estate to your closest relatives first — spouse, children, or parents — then to more distant relatives if none of the closer ones can be found. If no relative turns up at all, your property goes to the state. Learn more about Intestate Succession.

Getting help

Plenty of people put together a will or trust on their own. But if your situation feels complicated — layered assets, a child with special needs, or tricky family dynamics — it's worth talking with an estate planning attorney licensed in your state, since the right approach often depends on the details of your situation.