Wills and trusts are both estate planning documents, but trusts also help your assets and loved ones avoid probate court after your death. Without estate planning, like a last will and testament, the assets you intend to leave to loved ones may not reach them.

While the process may sound complex, making a will or trust can be more straightforward than many people expect. And the online tools available today can make it a lot easier.

Simply put, "Probate is a court-supervised process of managing and distributing assets of the deceased that were individually titled in the name of the decedent, ” said Evan Farr, certified elder law attorney. We cover what probate is and how wills and trusts each interact with the probate process to protect your assets after your death.

Will vs living trust: Which one is right for me?

The estate planning document you choose affects when your beneficiaries receive your assets and whether those assets are protected from creditors.

There are two kinds of living trusts: irrevocable and revocable. Both types of living trust allow your assets to bypass probate. But an irrevocable trust gives you less control and flexibility to make changes. In exchange, an irrevocable trust is the only kind that protects your assets from Medicaid or creditors after your death. A will gives you full control over your wishes and is easy to update, but those wishes go through probate court and become part of the public record after your death.

What is a will?

A will is an estate planning document that outlines your wishes for your assets and any guardianship requests upon your death. Wills are easier to create and update than trusts, and there is no income requirement. If you own a car, a home, or even pets or keepsakes, you have assets worth protecting in a will.

A will may be enough if...

• You have a relatively simple estate.
• You primarily want to name beneficiaries and guardians.
• You don't mind the probate process.

In many cases, fewer assets can make creating a will simpler. You can make a will without a lawyer. In our estate planning survey of 500 American adults, half had wills. Of that half, 64% were able to complete their wills online using an online willmaker.¹ Keep in mind that while you may not need a lawyer to complete your will, a notary is typically required for it to be legally valid.

Will vs. a living will

A living will is more accurately described as an advance health care directive (AHCD). Despite the name, it is not a will at all. Wills deal with your assets after death, while a living will outlines your wishes in a medical setting if you become unable to speak on your own behalf—similar in purpose to a medical power of attorney. Your executor carries out your will. Your medical team refers to your living will.

A few topics a living will covers that a will does not:

• CPR
• Ventilators
• Feeding tubes
• Pacemakers
• Artificial hydration

What is a living trust?

Both revocable and irrevocable trusts fall under the umbrella of "living trust." When you place assets in a trust, you become the manager but no longer the owner. If you transfer the title of your car or the deed to your home into a trust, the trust becomes the owner of those assets, and a trustee you appoint manages them on your behalf.

Pros:

• When an irrevocable living trust owns your assets, those assets are not counted toward your net worth when you apply for Medicaid.
• Both types of living trusts (revocable and irrevocable) allow your assets to pass directly to your beneficiaries when you die, bypassing the probate process.
• A revocable trust can be modified at any time.
• Trusts remain out of the public record after your death. Wills do not. 
• Trusts and successor trustees may eliminate the need for court-appointed guardians if you become unable to speak for yourself.

Cons:

• An irrevocable trust cannot be changed once established.
• Trusts are more complex to establish and may require an attorney to complete properly.

“For many older adults, a far more relevant type of trust is an irrevocable Medicaid asset protection trust (MAPT),” Farr said. “Within my own practice over the last 20 years, I have had more clients choose a MAPT than a revocable living trust. These clients do wish to avoid probate. But they also wish to protect their home(s), investments and other family resources from the potentially devastating expenses associated with nursing home level long-term care.”

Both irrevocable trusts and revocable trusts are considered living trusts.

Living trust vs. revocable trust

A revocable trust is one kind of living trust. If all you want from your trust is to help your loved ones avoid the probate process after your death, a revocable trust is likely sufficient. No matter how numerous or complex your assets are, if you want to maintain control over them while you are alive, a revocable trust is the right choice.

If you are trying to protect your assets from Medicaid assessments or creditor claims, you will need an irrevocable trust instead. The more restrictive the trust, the more protection it offers.

Living trust vs. trust

“Trust” refers to any arrangement in which assets are managed by a trustee on behalf of a beneficiary. A living trust is an umbrella term for both irrevocable trusts—which cannot be changed after they are established—and revocable trusts, which can be modified but do not protect assets from Medicaid or creditor claims. All of the trust types below fall under the living trust umbrella.

Other types of trusts

There are other trust options beyond those covered here. You can read more details about them on LegalZoom. Not all of the trusts below are estate planning tools:

• A/B trusts: A trust where one half (Half A) benefits the surviving spouse upon the grantor’s death, and the second half uses the existence of a surviving spouse to reduce or avoid estate taxes—taxes imposed on the assets of the deceased and paid by the estate before beneficiaries can collect their inheritance.
• Charitable trusts: A trust that allows you to earn income from its assets—such as property or investments—during your lifetime. When you die, the income the trust generated goes to a charity of your choice.
• Life insurance trust: This irrevocable trust places your life insurance policy into a trust so the payout is not considered part of your estate, allowing those funds to bypass estate tax. You can structure the trust so that your debts are paid from it, sparing your beneficiaries from having to manage your creditors.
• QTIP trusts: Officially called a qualified terminable interest property trust, a QTIP trust is best used when both spouses have children from previous marriages. You, the grantor, transfer assets such as rental property into the trust. The surviving spouse receives income from those assets until their own death, at which point the trust passes to the named beneficiaries—typically the adult children.
• Special needs trust: A trust used when an inheritance could affect a beneficiary's eligibility for benefits such as Medicaid or Supplemental Security Income (SSI).
• Specified trusts: Trusts designated for a specific use, such as funeral expenses or pet care. A trustee oversees the trust but is not required to become the pet guardian or plan the funeral.
• Spendthrift trusts: Trusts that restrict beneficiaries from freely spending their inheritance. A trustee manages distributions, and beneficiaries must request withdrawals rather than accessing funds directly.

Who needs a trust instead of a will?

People with complex assets need a trust more than they need a will—as does anyone looking to protect their assets from Medicaid or creditor claims. If you want your assets to avoid probate court after you die, you need a trust.

A trust may make sense if...

• You own significant assets.
• You want to avoid probate.
• You're planning for incapacity.
• You're considering Medicaid planning.
• You want more privacy.

You may also need a trust if you are concerned that leaving assets directly to someone could affect their eligibility for programs like Supplemental Security Income (SSI) or Medicaid. Trusts also exist for charitable donations and pet guardianship, though both of those arrangements can be made within a will as well.

“The biggest error made by clients and attorneys alike is viewing this as simply will vs. trust," Farr said. "Ultimately, the issue is ‘what risks must your plan address': Death? Incapacity? Probate? Family conflict? Creditor exposure? Long-term care? Or some combination thereof? Most people require coordinated documents rather than one single document."

When to use a living trust vs. a will

Common reasons to use a living trust instead of a will are to avoid probate, avoid publicity, or qualify for Medicaid. The last reason has a specific name: a Medicaid Asset Protection Trust (MAPT).

Medicaid Asset Protection Trusts are irrevocable trusts that transfer your assets—property, vehicles, investments—out of your name, so they are no longer counted toward your net worth when applying for Medicaid.

As an estate planning tool, trusts allow assets to pass directly to your beneficiaries without going through probate court, which can hold up distributions for months. Wills become part of the public record after they go through probate. The contents of trusts do not.

How to set up a living trust

When we asked adults about why they had not yet started estate planning, 11% said they did not know where to start.1 Setting up a trust can be as straightforward as writing a will online. Some online estate planning tools, such as GoodTrust, offer the option to create a trust through their software.

Because trusts are often most useful for people with substantial or complex assets, an attorney's involvement is typically recommended. If you decide to work with an attorney, gather the following before your meetings:

• Your full legal name, birth date, and address
• Full names and contact details for your successor trustee and secondary trustee
• Your intended asset distribution—how much each beneficiary will receive
• A complete list of your assets, including property, stocks, and financial accounts
• Documents related to those assets, such as deeds, vehicle titles, and marriage and birth certificates
• Distribution timeline and any conditions—for example, whether beneficiaries must reach a certain age or meet other criteria before receiving assets

Once the trust documents are signed and notarized, they are legally valid. One more step remains: retitle your assets so they are transferred to the trust. Retitle your car, your home, and any other assets listed in the trust. Anything listed in the trust must belong to the trust, or those assets are not protected.

12.4% of adults we surveyed who did not yet have a will said they would try to complete one on their own. 22% said they’d go to an estate planning attorney.¹

How to write a will

When thinking about how to make a will, consider your assets and any guardians you may need to appoint, for a minor child or a pet. Because wills are less complex than trusts, you may be able to complete your entire will online.

Speed was a primary factor our survey respondents cited for choosing online willmaking software over an attorney. Twenty-two percent said online willmakers were faster, while 21% found online estate planning easier or more convenient.¹ 

Making a will in seven steps:

1. Gather names and contact information for your beneficiaries and appointed guardians, including your personal representative, also known as the executor.
2. Compile a list of your debts and creditors, including your mortgage, car payments, and any outstanding loans.
3. List all of your assets with precise descriptions and values.
4. Outline your funeral preferences.
5. Meet with an attorney, download your state's will template, or use an online willmaker.
6. Enter the information you compiled into your will template or online form.
7. Once you are satisfied with the document, have it signed by an attorney and the required witnesses—typically two people not named in the will—and notarized.

You can also consult our estate planning checklist for additional guidance.

The exact number of witnesses may vary by state. Some online willmakers include access to an attorney for an additional fee. Notaries typically need to meet with you in person.

Store your will in a secure location and make sure your executor—and ideally other trusted loved ones—know where to find it.

Frequently asked questions 

Can you have both a will and a living trust?
Yes. A will governs any assets not included in the trust. If you want only some of your assets to avoid probate, you can create a trust for those assets and use your will to detail your remaining wishes.

How much does a living trust cost?
The cost of setting up a trust depends on the attorney you hire and the complexity of your assets. For a general estimate, consult an estate planning attorney in your area.

Does transferring property to a trust protect it from creditors?
Yes, as long as you transfer the property to an irrevocable trust.

Who owns the property in a revocable trust?
The trust owns the property. Once you transfer assets to the trust by retitling them, you are no longer the owner—the trust is. The trustee manages those assets on behalf of the trust.

Photo copyright Laura Loggi for NCOA use only

Source

1. NCOA. Estate Planning Survey. 500 respondents. Conducted using Pollfish. Launched March 2026