Estate planning is a cornerstone of preserving wealth and ensuring a lasting legacy for family members when you pass on the gift of financial stability. In this in‑depth exploration of “living trust vs will” we will guide you through the nuanced main differences between these two estate planning tools and help you build a comprehensive estate plan tailored to your goals.
What Is a Will

Definition and Purpose
A will is a legal document that outlines your final wishes for how to distribute assets after your grantor’s death. It is a written document that allows you to name an executor, detail guardianship provisions for minor children, and specify distribution of personal property including jewelry, family heirlooms, and bank accounts. This document is often referred to as a last will.
Key Features and the Probate Process
A will takes effect only upon your death and requires the probate process. Probate is managed within probate court and involves the court‑supervised validation of the will that allows the executor to manage and distribute assets. It establishes guardianship for minor children, ensures your specific wishes are honored, and handles distribution of remaining property, but the process can become a public record, introduce probate fees, and involve legal fees and probate costs.
What Is a Revocable Living Trust
Definition and Purpose
A revocable living trust, or revocable trust, is a trust document you create and fund during your grantor’s lifetime. It allows you to transfer assets into the trust such as bank accounts, real property, securities, personal property, and other assets. You typically serve as trustee while alive and name a successor trustee to manage or transfer assets after your incapacity or death.
Key Features: Avoid Probate and Privacy
A key advantage of revocable living trusts is bypassing the probate process, which helps avoid probate court and avoids probate fees and legal fees. Assets held in the trust, known as trust assets, transfer directly to beneficiaries without probate, maintaining privacy and avoiding becoming part of the public record. This also allows you to maintain control over estate assets, manage property if you become incapacitated, and ensure continuity of asset management by the successor trustee.
Estate Tax Considerations
For tax purposes, assets held in a revocable living trust remain part of your gross estate for calculating federal estate taxes and state estate tax. A revocable trust does not provide inherent estate tax savings because you retain control during life, so trust assets remain taxable. That said, with proper estate tax planning, such as irrevocable trust structures or marital deduction strategies often used by married couples, you may achieve estate tax saving, but these are separate from a standard revocable trust.
Living Trust vs Will: Key Differences

Feature | Will | Revocable Living Trust |
---|---|---|
Becomes effective | At grantor’s death | During grantor’s lifetime |
Probate process | Yes | No, bypass probate |
Privacy | Public record | Private, avoids probate court |
Incapacity planning | No | Yes, with successor trustee |
Guardianship for minor children | Yes | No |
Tax status | Estate subject to estate tax | Estate subject to estate tax |
Typical complexity and cost | Simpler, flat fee, simple will | More complex, higher legal fees |
Managing assets | Executor after death | Trustee during life and successor trustee after |
Asset types | Covers most estate assets, requires probate | Only trust‑assets are transferred, others need a pour‑over will |
Probate Considerations
A will requires probate; your remaining property and estate assets must go through probate court. Probate costs can include legal fees, probate fees, court costs, and delay distribution. A revocable living trust allows you to avoid probate for trust‑assets, speeding up transfer, reducing probate costs, and keeping your estate private, helping you save time and reduce expenses.
Incapacity and Management
With a will alone, no provision exists for incapacity, so managing assets if you are unable may require court guardianship or conservatorship. A revocable trust with successor trustee enables seamless management if you're incapacitated, which is a significant advantage in comprehensive estate planning.
Guardianship Provisions
Only a will can include guardianship provisions for minor children. A living trust cannot, so for a comprehensive estate plan you need both.
Tax Effects and Estate Tax Savings
Neither a will nor a revocable living trust alone provides estate tax savings, as trust assets remain part of your estate for federal estate taxes. Estate tax savings typically require irrevocable trust structures or post‑death planning. A revocable trust does offer probate and cost savings, but not direct estate tax avoidance.
Why Both You and Your Estate Need a Will and a Living Trust

A Comprehensive Estate Plan Includes Both Documents
A living trust serves as the central hub for distributing most assets while avoiding probate and maintaining privacy. A simple will, or a “pour‑over will”, catches any other assets not retitled into the trust, including personal property, remaining property, or assets mistakenly omitted. The will also designates guardianship for minor children and ensures your final wishes are legally documented.
Best Practices for Transferring Property and Funding the Trust
Simply creating and signing a trust document is not enough. You must retitle assets, transfer bank accounts, real property, retirement accounts, and joint tenancy assets into the trust; otherwise they remain probate assets.
Avoiding Common Pitfalls
A comprehensive estate plan avoids probate, positions the successor trustee to act, includes guardianship provisions, and aligns beneficiary designations on retirement accounts, bank accounts, and insurance to support transferring assets smoothly. It protects family members from probate costs, legal fees, and confusion.
Complex Estates and Additional Tools for Estate Tax Planning
Estate Tax and Federal Estate Taxes
If you have a significant amount of assets, your estate may be subject to federal estate taxes. A comprehensive estate plan may require irrevocable trusts, bypass trusts, or life insurance trusts to achieve estate tax savings. These tools help manage exposure to federal estate tax and state estate tax.
Use of Irrevocable Trusts and Testamentary Trusts
Irrevocable trust structures, created either during life or via a testamentary trust in a will, may protect assets from estate taxes and preserve wealth for beneficiaries. They differ from revocable living trusts, which do not yield tax savings but are pivotal for avoiding probate.
Step‑Up in Basis and Tax Purposes
When assets pass via a will or trust at grantor's death, beneficiaries may receive a stepped‑up basis in real property or other investments for tax purposes, reducing capital gains tax, a valuable consideration in estate tax planning.
The Role of Joint Tenancy, Beneficiary Designations, and Other Assets

Some assets bypass probate regardless of your will or trust due to joint tenancy or beneficiary designations such as on retirement accounts. These assets transfer directly to surviving beneficiaries like a surviving spouse or children. However, not all estate assets are protected this way, and these must be coordinated with your trust and will for clarity.
Putting It All Together in a Comprehensive Estate Plan
Creating a Cohesive Plan
A modern comprehensive estate plan uses both a living trust and a will, ensures trust assets are properly funded, matches beneficiary designations, accounts for personal property, real property, retirement accounts, and joint tenancy assets.
Legal Document Preparation and Coordination
Work with estate‑planning counsel who practice law in this area to draft the trust document, will, and any irrevocable trusts needed for estate tax purposes. Plan for how to transfer assets, account for complex estates, and cover end of life care or financial support for a surviving spouse or family members.
Reviewing and Updating
State law and your circumstances may change. Review your plan regularly, especially after major events like a change in marriage, birth of children, or acquiring a significant amount of new assets.
Frequently Asked Living Trust vs Will Questions
Can I avoid probate just with beneficiary designations?
Beneficiary designations and joint tenancy help bypass probate for specific assets, but not for most estate assets. A living trust helps avoid probate for trust assets while a will handles remaining property and guardianship.
Does a revocable living trust save on federal estate taxes?
No, revocable living trusts do not reduce federal estate taxes because the trust’s assets remain in your estate. Estate tax savings typically require irrevocable trust planning.
What happens if I die without a will or trust?
Your estate will be distributed per state law, often not as you intended. Probate proceeds and the probate process will determine guardianship, distribution, and will likely cost more in probate and legal fees.
How often should I update my estate plan?
Review every 3–5 years or after any major life or tax law change to ensure your estate plan continues to serve your family and maximize tax outcomes.
Conclusion
Choosing between living trust vs will is not a one‑or‑the‑other decision. A comprehensive estate plan includes both tools to manage assets during your grantor’s lifetime, avoid probate, maintain privacy, designate a successor trustee, protect minor children with guardianship provisions, and plan for estate tax savings with the right trust structures. By transferring assets into a trust, coordinating beneficiary designations, and keeping your documents updated, you ensure a smooth transfer of wealth that honors your intentions and secures your legacy for family and heirs.
Let Towerpoint Wealth guide you in crafting a comprehensive estate plan that protects your assets, minimizes legal fees and probate costs, and ensures your final wishes are clearly honored.