Legal basics
Will vs. trust: what's the difference?
Both pass things on. They take different routes.
A will and a living trust both say who gets what. The big difference is how things get there, and whether a court is involved.
| Will | Living trust | |
|---|---|---|
| Goes through probate (court)? | Usually yes | No, if it's set up fully |
| Public or private? | Becomes public record | Stays private |
| Cost to set up | Lower | Higher, often $2,000–$4,000+ with a lawyer |
| Names a guardian for kids? | Yes | No, you still need a will for this |
| Ongoing work | Very little | You have to move assets into it |
The catch with trusts
A trust only controls what's in it. If the house or bank accounts are never retitled into the trust's name, they may still go through probate. This step is called funding the trust, and it's the one people most often skip.
Which is right for you?
A will is enough for many people. A trust is often worth it if you own a home, especially in a state where probate is slow or costly, own property in more than one state, or want privacy or more control over when people inherit.
Most people with a trust also have a short will, called a pour-over will, that catches anything left outside the trust.