A will and a trust aren’t rivals—they’re tools. But they do very different jobs. One size does not fit all. One size does not fit all.
What a Will Does (and Doesn’t)
- Directs who gets your probate assets after you pass.
- Names guardians for minor children.
- Doesn’t control non-probate assets (like life insurance or retirement accounts with beneficiaries). Those pass outside the will. (American Bar Association)
- Did you know… a will becomes public once it’s filed in court? Anyone can read it. A revocable living trust, properly funded, isn’t public. (American Bar Association)
What a Revocable Living Trust Does
- Avoids probate on assets titled to the trust (smoother, often faster, and private). (American Bar Association, Kiplinger)
- Manages assets if you’re incapacitated (your successor trustee steps in without court). (American Bar Association)
- Handles “far-flung” assets (property in multiple states) without multiple probates. (American Bar Association)
The Catch: “Funding” Is Everything
Creating a trust is step one. Retitling assets into the trust is step two. If you don’t fund it, probate may still be needed for anything left outside. (Yes, that happens all the time.) (Kiplinger)
When a Will Alone Can Fall Short
- You own a home (or two), and your state’s probate is slow/costly.
- You want privacy for your family and finances.
- You own real estate in more than one state. (American Bar Association)
Smart Combo: Will + Trust + Beneficiary Designations
- Will to sweep up anything outside the trust (“pour-over will”).
- Revocable trust for privacy, incapacity planning, and probate avoidance.
- Beneficiary designations on retirement accounts and life insurance (they bypass probate). Coordinate them with the plan so the tail doesn’t wag the dog. (American Bar Association)
FAQs
Q: If I have a trust, do I still need a will?
A: Yes—a short “pour-over” will catches anything left outside your trust so it still follows your plan. (American Bar Association)
Q: Do beneficiary designations really bypass probate?
A: Yes, for things like IRAs/401(k)s and life insurance—if they’re filled out correctly and stay updated. (American Bar Association)
Q: Will a revocable trust cut my taxes?
A: Generally, no. It’s about control, continuity, and privacy—not tax reduction. (American Bar Association)
Friendly reminder: laws vary by state. Talk with a qualified estate attorney to tailor this to your family.