Of all the estate planning tools out there, these two are the most popular: Living Trust and Last Will. It’s no wonder that one of the most common questions people ask us is: "Should I create a living trust or a last will?"

Both tools are useful when protecting your legacy and providing for your loved ones, but each does so in different ways. In this post, we explain how living trusts and last wills work as well as the pros and cons of each, thus empowering you to make confident decisions about your future.

Last Will and Testament

What is a Will?

A Last Will and Testament, or just a Will for short, is a legal document you use to lay out all your wishes for how you want to distribute your assets upon your death. In it, you can specify:

Who will receive your money, properties, and other assets
Who will be the executor (the person responsible for ensuring that your wishes are followed)
Who will serve as the guardian of your minor children

As one of the most basic estate planning documents, you can easily make a Last Will and Testament on your own with our Free Will Template. It provides details and explanations of everything to include, and a simple format to follow. As long as the written portions are in your own handwriting, it is a 100% legally valid form of a simple estate plan.

Pros of a Last Will

1. Simple and accessible.

Creating a last will is straightforward and cost-effective. Even if you're new to estate planning, you can easily accomplish the documents and requirements for a last will, giving you a sense of control and peace of mind.

2. Allows the naming of guardians.

A will is the only legal document where you can name a guardian for your minor children. This is essential if you are a parent or guardian of young dependents.

3. Outlines asset distribution.

A last will lets you legally document your intentions for distributing your assets: whether you want to give them all to an heir or divide them among multiple beneficiaries.

4. Support for a living trust.

Your last will can serve as a backup for a living trust. In case some assets are not transferred to the trust before your death, your last will can serve as a “pour-over will” that transfers these assets to the trust.

Cons of a Last Will

1. Requires probate.

The execution of a last will requires probate, a court-supervised process of validating your will and distributing assets. Although a necessary legal process, probate takes time (from months up to a year), is costly, and inflicts additional stress on grieving loved ones.

2. Becomes public record.

A last will must be filed with a court as part of the probate process. Once this happens, the will becomes public record. This makes your will accessible to the public, which is not ideal if you want to keep the details of your will private.

3. Has limited protection.

A will can only offer the protection of having your wishes in writing upon your death. It cannot offer guidance or authority to manage your affairs if you become incapacitated or incapable of doing so.

Living Trust

What is a Living Trust?

A living trust, also called a Revocable Living Trust, is another valuable legal document for estate planning. When you create a living trust, you transfer all your assets under the trust, and you become the trustee. You can then assign a successor trustee who handles the administration of your trust upon your death.

Unlike a will, a trust is active while you’re still alive. As a trustee, you maintain complete access and authority over your assets. If you become incapacitated or pass away, your successor trustee takes over and follows your instructions. The key benefit of a living trust over a last will is control and flexibility, especially when it comes to avoiding probate.

Pros of a Living Trust

1. Avoids probate.

Perhaps the biggest benefit of a living trust is that bereaved loved ones can avoid probate. This makes asset distribution faster, easier, and less expensive. It means that when you die, you can provide for your loved ones’ needs right away and with less hassle.

2. Maintains privacy.

A living trust lets you keep your affairs private. Trusts are not public record, so your financial and personal matters stay confidential, providing you with a sense of security and peace of mind.

3. Protects in case of incapacity.

Your living trust provides protection if you become incapacitated through illness or injury. Your successor trustee can step in immediately without court intervention to manage your assets while you’re unable to do so.

4. More detailed control.

A living trust allows for more detailed instructions as to how your assets are managed or distributed. For example, you can instruct that your child receives basic financial support but gets their bulk inheritance in stages as they achieve milestones like college graduation or reach a certain age.

5. Efficient for multi-state assets.

Different states have varying estate and probate laws. Upon your death, any asset you own will be subject to state jurisdiction. Thus, if you own multiple properties in multiple states, your will might be subject to multiple probate cases. A living trust helps you avoid these probate cases.

Cons of a Living Trust

1. Requires investment.

Creating a living trust is more expensive upfront than creating a last will. You must invest more time and money to get the correct legal guidance to establish and maintain a trust. But this investment pays off in the end in probate fees and tax savings, complete asset protection, and peace of mind.

2. Requires more management.

A living trust requires more management than a last will. Because the trust only controls the assets you transfer into it, you must continuously review and update your assets. You also need to check if the trust has enough funds to maintain it. If you forget to fund it (or miss certain assets), those may still have to go through probate.

3. Doesn’t name guardians.

A living trust cannot appoint guardians for your children, so you’ll still need a will alongside your trust.

See the table below to compare a living trust against a last will:

Do You Need a Last Will or Living Trust?

So, the question is: Do you need a last will or a living trust? The answer depends on your situation. Consider these scenarios:

If you have a young family with small children and a relatively small estate. Your main priority is to name a guardian for your children, so a last will may be a better choice.
If you are a homeowner or business owner with real estate and other significant properties to protect. A living trust is a better choice for its wealth protection against probate and estate expenses.
If you are privacy-conscious and want to keep your affairs private. Create a living trust to make sure that your estate will not become part of the public record.
If you have a high net worth estate and want more control and protection. Set up a comprehensive living trust to make sure your larger and more complex assets are managed properly while you’re still alive and once you pass.

In most cases, having both a will and a trust is recommended to help you cover all your bases. Your will lets you name guardians for your young dependents and can serve as a safety net for any assets not transferred to the trust. Your trust, on the other hand, can handle the day-to-day and after-death management of your estate, with privacy and efficiency.

Create Your Last Will and Living Trust with the Expert Guidance of the Rilus Law Team

Estate planning can be an overwhelming process, often filled with complicated steps, legal documents, and difficult decisions. But the first step to building a truly effective estate plan is simple: understanding your options.

Whether you choose a Last Will, a Living Trust, or both, what matters most is that your wishes are clearly documented—and that your loved ones are protected.

The Rilus Law team is committed to making estate planning simple and accessible. Feel free to access our resources or contact us if you can’t find the information you’re looking for.

We’re here to support your estate planning goals, walk you through every detail, answer your questions, and, when you’re ready, create a plan that’s tailored to your life, your values, and your future. Connect with us today!

Living Trust vs. Last Will: Pros and Cons Explained