Legal & Estate
Will vs. living trust: which does your family need?
Updated April 1, 2026 · Editorial policy
Wills and trusts solve overlapping problems and people often confuse them. A will tells the court who gets what when you die. A trust holds assets during your life and transfers them after death without going through court. The right answer for your family depends on what you own, where you own it, and how complicated your beneficiaries are.
What a will does
A last will and testament names an executor, designates guardians for minor children, and directs how your probate assets are distributed. It only takes effect at death and only after the probate court admits it.
A will is public record. Probate is supervised by the court, takes 6–18 months in most states, and costs 3–7% of the estate in fees. For modest estates that's fine; for larger or contested estates that's a lot.
What a revocable living trust does
A revocable living trust is a legal entity that holds assets during your life. You are the trustee while you're alive and competent. When you die or become incapacitated, a successor trustee distributes the assets according to your instructions — without probate.
Trusts are private (no court file), faster (assets distribute immediately), and good for assets in multiple states (no separate probate per state). They're also useful when a beneficiary has special needs, addiction, or shouldn't get a lump sum at 18.
When a will is enough
Most families with these characteristics are well-served by a will and good beneficiary designations:
- Estate under your state's probate threshold (often $100k–$200k of probate assets).
- Most assets pass by beneficiary designation: 401(k), IRA, life insurance, payable-on-death bank accounts.
- Real estate in only one state.
- Adult, competent beneficiaries who can manage a lump sum.
When a trust makes sense
Consider a revocable living trust when any of these are true:
- You own real estate in two or more states (avoids ancillary probate).
- You want privacy — court probate filings are public.
- You have a beneficiary with special needs, addiction, or who isn't ready for a lump sum.
- You want to streamline incapacity (your successor trustee can step in without a court).
- You have a complex blended family or want generation-skipping protection.
What neither one does
A will or trust by itself does not authorize anyone to act for you while you're alive. You still need a durable financial POA, a healthcare POA, and a HIPAA release. Estate planning isn't one document — it's a packet.
Neither a will nor a trust avoids estate tax automatically. Federal estate tax has a high threshold ($13M+ in 2025), but state estate and inheritance taxes vary widely.
Sources
Sandwich is a directory and information site. This page is not legal, medical, or financial advice. For decisions that affect your family, consult a licensed professional in your state.
Frequently asked questions
If I have a trust, do I still need a will?
Yes. You need a 'pour-over' will that catches anything you forgot to put in the trust and directs it into the trust. The will also names guardians for minor children — a trust can't do that.
Will a living trust save me on taxes?
Usually no. A revocable living trust is tax-neutral during your life (your SSN, your tax return). Tax savings come from irrevocable trusts and other planning, which is more advanced.
What does it cost to set up?
A simple will costs $200–$1,000. A revocable living trust package (with pour-over will, POAs, and HIPAA) usually costs $1,500–$4,000 from an estate planning attorney. Doing it yourself is possible but risky for anything beyond a simple estate.
Do I need to fund the trust?
Yes — and this is the #1 reason trusts fail. Funding means re-titling your house, brokerage accounts, and other major assets into the trust's name. An unfunded trust is just a piece of paper.
Can I write my own will?
Yes, but only if you follow your state's execution rules — usually two witnesses and (in some states) notarization. Holographic (handwritten) wills are accepted in some states but contested often. For most families, a $200–$500 attorney-drafted will is worth the certainty.