2026 Estate Planning Guide
Will vs Trust
Which Estate Planning Tool Do You Actually Need?
67% of Americans don't have a will or trust. Here's why you need at least one — and how to decide which.
Written by Glen Bradford — Purdue engineer, investor, and someone who put off estate planning for way too long.
67%
of Americans have no will or trust
3-7%
of your estate lost to probate costs
6-18mo
average probate timeline
$1,500
average cost to set up a living trust
Disclaimer: I'm a finance guy, not a lawyer. This guide is educational — not legal advice. Estate planning laws vary significantly by state. For anything beyond the basics, work with an estate planning attorney in your state. That said, I've done extensive research and consulted with professionals. This guide will help you understand your options before you sit down with a lawyer.
What's Inside
Quick Comparison: Will vs Revocable Trust vs Irrevocable Trust
The at-a-glance version. We'll dig into each of these below.
Cost to Set Up
$300 - $1,000 with an attorney. DIY options (LegalZoom, Nolo) as low as $90.
$1,500 - $5,000 with an attorney. Includes pour-over will, power of attorney, and healthcare directive.
$2,500 - $10,000+. More complex drafting. Often involves tax counsel.
Avoids Probate?
No. A will must go through probate court. That means delays, costs, and public records.
Yes. Assets titled in the trust skip probate entirely. This is the #1 reason people create trusts.
Yes. Same as revocable — assets in the trust bypass probate.
Privacy
None. Wills become public record once filed with probate court. Anyone can look up what you left and to whom.
Full privacy. Trusts are private documents. No public filing. No nosy neighbors.
Full privacy. Same as revocable — not filed with any court.
When It Takes Effect
Only after death. A will does nothing while you're alive. Zero protection during incapacity.
Immediately upon creation and funding. Works during your lifetime AND after death.
Immediately upon creation. Assets leave your estate right away.
Can Be Changed?
Yes, anytime. You can revoke or amend your will as many times as you want while mentally competent.
Yes. You can amend, revoke, or completely rewrite it at any time. That's what 'revocable' means.
Generally no. Once signed, it's extremely difficult to change. That's the trade-off for the tax and asset protection benefits.
Covers Incapacity?
No. If you become incapacitated, a will does nothing. Your family will need a court-appointed guardianship (expensive, slow, humiliating).
Yes. Your successor trustee takes over management immediately. No court involvement. This alone is worth the cost.
Yes. The trustee manages assets per the trust terms. You've already given up control.
Asset Protection
None. Assets in your name are exposed to creditors, lawsuits, and divorce proceedings until distributed.
Minimal. Assets in a revocable trust are still considered yours — creditors can reach them.
Strong. Assets are no longer yours legally. Creditors, lawsuits, and divorce courts generally can't touch them.
Estate Tax Benefits
None directly. Assets pass through your estate and are subject to estate tax if applicable.
None directly. Assets are still part of your taxable estate. Revocable trusts don't reduce estate tax.
Yes. Assets are removed from your taxable estate. Critical for estates above the $13.61M exemption (2024).
Complexity
Low. A basic will is a few pages. Most people understand it intuitively.
Medium. Requires funding (retitling assets). The trust itself is 20-40 pages. You need to maintain it.
High. Complex tax implications. You lose control of assets. Requires careful planning with an estate attorney.
Bottom Line: A will is the minimum. A revocable living trust is the upgrade most families need. An irrevocable trust is for high-net-worth individuals and specific asset protection situations. Most people should have at least a will and probably a revocable living trust.
What Is a Will?
A last will and testament is a legal document that spells out your wishes after you die: who gets your stuff, who takes care of your kids, and who manages the process. It's the most basic estate planning document, and it's been around for literally thousands of years.
What a Will Does
- +Names who inherits your property (beneficiaries)
- +Appoints a guardian for minor children
- +Names an executor to manage the estate
- +Can create testamentary trusts for minors
- +Can specify funeral and burial wishes
What a Will Does NOT Do
- -Does NOT avoid probate (it requires probate)
- -Does NOT provide privacy (becomes public record)
- -Does NOT help during incapacity
- -Does NOT override beneficiary designations on retirement accounts or life insurance
- -Does NOT protect assets from creditors
Requirements for a Valid Will
In most states: you must be 18+ and "of sound mind," the will must be written (typed is fine), signed by you, and witnessed by 2 people who aren't beneficiaries. Some states require notarization. Handwritten ("holographic") wills are valid in about half the states but are more easily contested. Always get your will properly witnessed and notarized — it costs nothing extra and saves potential headaches.
What Is a Trust?
A trust is a legal arrangement where you (the "grantor") transfer assets to a trustee who manages them for your beneficiaries according to your instructions. Think of it as a container for your assets with a detailed instruction manual attached.
Revocable Living Trust
The most common type. You create it, fund it, control it, and can change it anytime. Upon death, assets transfer to beneficiaries without probate. You serve as your own trustee during your lifetime.
Pros
- +Avoids probate entirely
- +Handles incapacity seamlessly
- +Completely private
- +Can be changed or revoked anytime
- +You maintain full control
Cons
- -No asset protection from creditors
- -No estate tax benefits
- -Must be funded (assets retitled) to work
- -More expensive than a will to create
Irrevocable Trust
You permanently transfer assets out of your estate. You give up control in exchange for asset protection and estate tax benefits. Used by high-net-worth individuals and those in vulnerable professions.
Pros
- +Strong asset protection from creditors and lawsuits
- +Reduces taxable estate (estate tax savings)
- +Protects assets from nursing home costs (with proper planning)
- +Can protect beneficiaries from their own poor decisions
Cons
- -You lose control of the assets
- -Extremely difficult to change once signed
- -Complex tax filing (separate tax return)
- -More expensive to set up and maintain
Testamentary Trust
Created by your will and only takes effect after death. Doesn't avoid probate (the will still goes through probate), but can control how assets are distributed after. Often used for minor children.
Pros
- +No setup cost beyond the will itself
- +Protects beneficiaries from receiving a lump sum too young
- +Can set conditions on distributions (age milestones, education, etc.)
- +Simpler than a living trust during your lifetime
Cons
- -Does NOT avoid probate
- -No incapacity protection
- -Becomes public through the probate process
- -Court oversight of the trust after creation
Key Players in a Trust
Grantor (Settlor)
The person who creates the trust and transfers assets into it. In a revocable living trust, you're the grantor AND the initial trustee.
Trustee
The person or entity that manages the trust assets. You can be your own trustee. You also name a successor trustee for when you can't serve (incapacity or death).
Beneficiary
The person(s) who receive the trust assets. Can be specific people, charities, or contingent beneficiaries who receive assets if primary beneficiaries predecease you.
The Probate Problem
Probate is the court process that validates a will and oversees the distribution of a deceased person's assets. It exists to protect creditors and beneficiaries. But in practice, it's slow, expensive, and public. This is the primary reason people create trusts.
3-7%
Cost of Probate
Attorney fees, executor commissions, court costs, appraisal fees, and accounting costs. On a $1M estate, that's $30K-$70K gone before your family sees a dime.
6-18 mo
Time in Probate
Your family can't access assets during probate. If your spouse needs money for the mortgage, too bad — the court moves at its own pace. Contested estates can take 2-5 years.
100%
Public
Every asset, every debt, every beneficiary — it's all public record. Anyone can look it up. Identity thieves, estranged relatives, salespeople — they all get access.
Probate Costs by State
| State | Cost (% of Estate) | Timeline | Notes |
|---|---|---|---|
| California | 4-7% | 12-18 months | Statutory attorney and executor fees. $500K estate = $22K-$35K in fees alone. |
| Florida | 3-5% | 6-12 months | Reasonable attorney fees. No statutory schedule, but courts approve 3-5%. |
| New York | 2-5% | 9-15 months | Statutory executor commissions on a sliding scale. Court filing fees on top. |
| Texas | 2-5% | 6-12 months | Independent administration available (faster, cheaper). But still public. |
| Average | 3-7% | 6-18 months | On a $1M estate, probate can cost $30K-$70K. A trust costs $3K-$5K to set up. |
The math is clear: A revocable living trust costs $1,500-$5,000 to set up. Probate costs 3-7% of your estate. If your estate is worth more than ~$75K (and if you own a home, it almost certainly is), the trust literally pays for itself. Your heirs get more, faster, and privately.
When You Only Need a Will
Young & Single, Small Estate
If you're in your 20s, rent your home, have a basic bank account and maybe a car, a simple will is plenty. Name who gets your stuff and who manages the process. You don't need a $3,000 trust for a $15,000 estate.
Estate Under Your State's Probate Threshold
Most states have a simplified probate process (or skip it entirely) for small estates. California: under $184,500. Florida: under $75,000. New York: under $50,000. If you're under the threshold, probate is minimal anyway.
All Assets Have Beneficiary Designations
If your wealth is mostly in 401(k)s, IRAs, and life insurance — all with named beneficiaries — those assets skip probate automatically. A will handles the remainder. Many young professionals are in this situation.
Joint Ownership Covers Everything
Married couples who own everything jointly (with right of survivorship) pass assets automatically at the first death. A will is still important for the second death and for naming guardians for children.
You Need to Name a Guardian for Children
This is the one thing a will does that a trust CANNOT. Only a will can name a legal guardian for your minor children. Even if you have a trust, you need a will for this reason alone.
You're on a Tight Budget
A will is better than nothing. If $300 for a basic will is what you can afford, do that. Don't let perfect be the enemy of good. You can always upgrade to a trust later when your estate grows.
When You Need a Trust
You Own Real Estate
If you own a home — especially in a high-cost state like California, New York, or Florida — a trust is almost always worth it. Real estate requires full probate regardless of value. A $300K condo in Florida means your family waits 6-12 months and pays $9K-$15K in probate costs. A trust avoids all of that.
Real Estate in Multiple States
Own property in two states? Without a trust, your estate goes through probate in EACH state where you own real property. That's two sets of attorneys, two sets of court fees, two timelines. A trust handles everything in one place, regardless of where the property is located.
Privacy Matters to You
Probate makes everything public. Your assets, debts, beneficiaries — all searchable. If you don't want the world knowing what you left your kids (or that you disinherited someone), a trust keeps it private. This matters more than people think.
Blended Family
Second marriage with kids from a prior relationship? This is trust territory. A trust can provide for your current spouse during their lifetime while ensuring your children from a prior marriage ultimately inherit. Without a trust, your spouse could inherit everything and leave your kids nothing.
High Net Worth ($1M+ Estate)
At $1M+, probate costs become painful: $30K-$70K in fees. A $3,000-$5,000 trust saves your family tens of thousands. If you're above the estate tax exemption ($13.61M in 2024), an irrevocable trust can save hundreds of thousands in estate taxes.
Business Owner
If you own a business, dying without a trust can be catastrophic. Probate can freeze business assets, disrupt operations, and force a fire sale. A trust allows your successor trustee to immediately manage or transfer the business according to your plan.
Incapacity Protection
A will does nothing if you're alive but incapacitated. With a revocable trust, your successor trustee steps in immediately — pays bills, manages investments, handles property. Without it, your family goes to court for a guardianship proceeding. That's public, expensive, and heartbreaking.
Beneficiary with Special Needs
If you have a beneficiary receiving government benefits (SSI, Medicaid), a direct inheritance can disqualify them. A special needs trust (a type of irrevocable trust) provides supplemental support without jeopardizing benefits. This is non-negotiable for special needs planning.
The Cost Comparison
| Item | Will | Revocable Trust | Irrevocable Trust |
|---|---|---|---|
| Attorney Fees | $300 - $1,000 | $1,500 - $5,000 | $2,500 - $10,000+ |
| DIY Option | $90 - $250 | $300 - $600 | Not recommended |
| Includes (Attorney) | Will only | Trust + pour-over will + POA + healthcare directive | Trust + supporting documents + tax planning |
| Ongoing Maintenance | Free (update as needed) | Free (retitle new assets) | $500 - $1,500/yr (separate tax return) |
| Probate Cost (Saved) | $0 (you pay probate) | 3-7% of estate saved | 3-7% of estate saved |
Real Example: The Math on a $500K Estate
With a Will Only
- Will creation$500
- Probate attorney fees (3-5%)$15,000 - $25,000
- Executor fees (2-4%)$10,000 - $20,000
- Court & filing fees$500 - $2,000
- Total Cost to Heirs$26,500 - $47,500
With a Revocable Living Trust
- Trust package (attorney)$3,000 - $5,000
- Probate costs$0
- Court fees$0
- Distribution timelineWeeks, not months
- Total Cost to Heirs$3,000 - $5,000
Savings: $21,500 - $44,500
The trust pays for itself 5-10x over. And your family gets their inheritance in weeks instead of 12-18 months.
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5 Estate Planning Mistakes That Cost Families Thousands
Dying Without Any Plan (Intestacy)
CriticalIf you die without a will or trust, your state decides who gets everything. Your spouse might not get it all — in many states, children automatically get a share. Unmarried partners get nothing. Your estranged relative you haven't spoken to in 20 years? They might inherit. The state follows a rigid formula that almost certainly doesn't match what you'd want.
Creating a Trust But Never Funding It
CriticalThe #1 estate planning mistake that attorneys see. You pay $3,000 for a beautiful revocable living trust, put it in a drawer, and never retitle your house, bank accounts, or brokerage accounts into the trust. When you die, those assets aren't in the trust — they go through probate anyway. An unfunded trust is an expensive piece of paper.
Forgetting Beneficiary Designations
Here's what most people don't realize: beneficiary designations on 401(k)s, IRAs, and life insurance override your will AND your trust. If your ex-spouse is still listed as the beneficiary on your $500K life insurance policy, they get it — regardless of what your will says. Review beneficiary designations every year.
Not Updating After Life Changes
Marriage, divorce, new children, death of a beneficiary, moving to a new state, significant wealth changes — all of these require updating your estate plan. That will you made when you were 25 and single doesn't work when you're 45 with three kids and a house. Estate plans aren't set-it-and-forget-it.
Skipping Power of Attorney Documents
A will only works after death. A trust only covers assets inside it. But who makes medical decisions if you're in a coma? Who pays your bills if you have a stroke? Without a financial power of attorney and healthcare directive, your family goes to court for guardianship — a public, expensive, agonizing process. These documents cost $200-$500 and save your family thousands and months of stress.
The Minimum Estate Plan Everyone Needs
- 1. A will (or trust) naming beneficiaries and an executor/trustee
- 2. A financial power of attorney (who manages your money if you're incapacitated)
- 3. A healthcare directive / living will (your medical wishes + who makes decisions)
- 4. Updated beneficiary designations on all retirement accounts and life insurance
- 5. A guardian designation for minor children (in your will)
Total cost for all five: $500-$2,500 with an attorney. This is the bare minimum. Don't have it? Stop reading and schedule an appointment.
DIY vs Lawyer: When Each Makes Sense
Estate planning doesn't always require a $5,000 attorney. But sometimes skipping one costs your family $50,000. Here's when DIY works and when you need a professional.
Simple Will (Single, No Kids, Small Estate)
DIY is fineIf you're single, have no children, and your estate is straightforward (bank accounts, maybe a car), a service like LegalZoom ($90-$250) or even a state-specific template from Nolo works. Just make sure it's properly witnessed and notarized per your state's requirements.
Will with Minor Children
Hire a lawyerNaming a guardian for your children is the most important thing you'll ever do in estate planning. A lawyer ensures the guardianship provisions are ironclad, considers backup guardians, and addresses funding for the children's care. Don't leave your kids' future to a $99 template.
Revocable Living Trust
Hire a lawyerTrusts require proper drafting, funding guidance, and coordination with your will, power of attorney, and beneficiary designations. An unfunded or poorly drafted trust is worse than no trust at all — you've spent thousands and still end up in probate. A good estate attorney earns their fee here.
Blended Family / Second Marriage
Definitely hire a lawyerBlended families create competing interests: your current spouse vs. your children from a prior marriage. Without careful planning (often involving trusts), your spouse could inherit everything and leave your biological children with nothing — or vice versa. This requires a professional.
Business Owner / High Net Worth
Hire a teamOnce you're dealing with business succession, estate tax planning, generation-skipping trusts, or charitable giving strategies, you need an estate attorney and a CPA working together. The cost of professional planning ($5K-$20K) is trivial compared to the estate tax bill or family conflict it prevents.
Irrevocable Trust / Asset Protection
Hire a specialistIrrevocable trusts involve permanently giving up control of assets. The tax implications are complex (separate EIN, separate tax return, compressed tax brackets). Medicaid planning, asset protection trusts, and generation-skipping trusts are specialty areas. Get an attorney who does this daily.
How to Find a Good Estate Planning Attorney
- 1.Ask for referrals from your CPA or financial advisor
- 2.Look for attorneys who specialize in estate planning (not general practice)
- 3.Check for board certification in estate planning or elder law
- 4.Get a flat-fee quote upfront (avoid hourly billing for basic estate plans)
- 5.Ask if the fee includes trust funding assistance
- 6.Read reviews on Avvo, Google, or your state bar's referral service
Glen's Take
Glen Bradford
Finance nerd, not a lawyer · Miami Beach
I'll be honest: I put off estate planning for years. I'm a finance guy who writes about investing, runs thousands of trades, and obsesses over tax optimization — but somehow I convinced myself that estate planning was a "later" problem. It's not.
The irony is brutal. I spend hours optimizing my business entity structure to save a few thousand in taxes, but I hadn't set up the documents that would protect my family from losing tens of thousands in probate costs. Priorities, right?
Here's what I actually think: If you own any real estate, have dependents, or have assets above $100K, get a revocable living trust. The cost is trivial compared to what probate would cost your family. If you're young and single with a simple estate, a will is fine for now — but set a calendar reminder to revisit when your life gets more complex.
The biggest thing I learned researching this? The power of attorney and healthcare directive are just as important as the will or trust. These documents handle the "while you're alive but can't make decisions" scenario. Without them, your family goes to court. With them, someone you trust steps in immediately. That peace of mind is worth every penny.
My advice: Stop procrastinating (like I did). Spend 2-3 hours with an estate planning attorney. Get the full package: will, trust, power of attorney, healthcare directive. It'll cost $2,000-$4,000, and it's the best money you'll ever spend. Your future incapacitated self and your grieving family will thank you.
Standard disclaimer: I am not a lawyer. This is not legal advice. Consult an estate planning attorney licensed in your state for advice specific to your situation. I'm just a Purdue engineer who finally got around to reading about this stuff.
Quick Decision Framework
Do you own real estate?
Yes → Get a revocable living trust. Probate on real estate is expensive and slow.
No → A will may be sufficient. Continue below.
Is your estate above your state's probate threshold?
Yes → Get a trust. You'll save thousands in probate costs.
No → A simple will is likely enough.
Do you have minor children?
Yes → You MUST have a will (for guardianship). A trust is also recommended.
No → Continue to next question.
Do you want incapacity protection?
Yes → A revocable living trust + power of attorney handles this.
No → At minimum, get a power of attorney and healthcare directive.
Is your estate above $13.61M (estate tax exemption)?
Yes → You need an irrevocable trust and a tax attorney. Yesterday.
No → A revocable trust handles everything you need.
Frequently Asked Questions
What is the main difference between a will and a trust?
A will is a legal document that only takes effect after death and must go through probate court (a public, time-consuming, expensive process). A trust takes effect immediately upon creation, avoids probate entirely, provides privacy, and can manage your assets if you become incapacitated. A will says 'here's what I want to happen.' A trust actually makes it happen without court involvement.
Do I need a trust if I already have a will?
Not necessarily. If you have a simple estate (under your state's probate threshold), no real estate in multiple states, and no privacy concerns, a will may be sufficient. But if you own property, want to avoid probate, have minor children, or want incapacity protection, a revocable living trust is worth the additional cost. Most estate attorneys recommend both — a trust for your main assets and a 'pour-over will' as a safety net for anything not in the trust.
How much does a trust cost compared to a will?
A basic will costs $300-$1,000 with an attorney ($90-$250 DIY). A revocable living trust package typically costs $1,500-$5,000 and includes the trust, a pour-over will, financial power of attorney, and healthcare directive. An irrevocable trust runs $2,500-$10,000+. While a trust costs more upfront, probate costs 3-7% of your estate — on a $500K estate, that's $15K-$35K your heirs would pay. The trust pays for itself many times over.
What happens if I die without a will or trust?
Your state's intestacy laws determine who inherits everything. Generally, assets go to your spouse and/or children in a formula you don't control. Unmarried partners receive nothing. Close friends receive nothing. Your favorite charity gets nothing. The court appoints an administrator (who may not be who you'd choose), and the entire process is public, expensive, and slow. In short: the state writes your estate plan for you, and you probably won't like it.
Can I create a trust without a lawyer?
Technically yes, but it's generally not recommended. Online services offer trust templates for $300-$600, but they can't advise on funding the trust (retitling assets), coordinating beneficiary designations, state-specific requirements, or tax implications. The most common trust mistake — creating one but never funding it — happens almost exclusively with DIY trusts. A poorly drafted trust can be worse than no trust at all.
What does it mean to 'fund' a trust?
Funding a trust means retitling your assets in the name of the trust. Your house deed changes from 'John Smith' to 'John Smith, Trustee of the John Smith Living Trust.' Bank accounts, brokerage accounts, and other assets are similarly retitled. Any asset NOT in the trust goes through probate when you die. Funding is the most critical step and the one most people skip. Your attorney should provide a funding checklist and help with the process.
Does a living trust protect assets from creditors?
A revocable living trust does NOT protect assets from creditors. Because you maintain control and can revoke the trust at any time, courts treat the assets as still belonging to you. For asset protection, you need an irrevocable trust — which requires permanently giving up control. Some states (Nevada, South Dakota, Delaware) allow domestic asset protection trusts that offer some protection while maintaining limited access, but these are complex and expensive.
Do I still need a will if I have a trust?
Yes. Even with a trust, you should have a 'pour-over will' — a will that directs any assets not already in the trust to be transferred into it at death. Without a pour-over will, any assets you forgot to retitle (that new car you bought, the bank account you opened last year) would go through intestacy instead of following your trust's distribution plan. The pour-over will is your safety net. It also names guardians for minor children, which a trust cannot do.
Your Complete Estate Planning Checklist
Core Documents
- [ ]Last Will and Testament
- [ ]Revocable Living Trust (if applicable)
- [ ]Financial Power of Attorney
- [ ]Healthcare Directive / Living Will
- [ ]HIPAA Authorization
Action Items
- [ ]Review all beneficiary designations (401k, IRA, life insurance)
- [ ]Retitle assets into trust (if applicable)
- [ ]Store documents securely (not a safe deposit box!)
- [ ]Tell your executor/trustee where documents are
- [ ]Schedule annual review (set a calendar reminder)
If You Have Children
- [ ]Name a guardian (and a backup guardian) in your will
- [ ]Set up a trust for children's inheritance
- [ ]Name a trustee to manage funds until children are old enough
- [ ]Consider age milestones for distributions (25, 30, 35)
Review Triggers
- !Marriage or divorce
- !Birth or adoption of a child
- !Death of a beneficiary or executor
- !Major change in net worth or real estate
- !Moving to a different state
Recommended Resources
Tools & books I actually use and recommend
SeekingAlpha Premium
Quant ratings, earnings transcripts, and the stock analysis community where I published 300+ articles.
Try SeekingAlphaA Random Walk Down Wall Street
Burton Malkiel's classic case for index investing. The book that convinced millions to stop stock-picking.
View on AmazonThe Little Book of Common Sense Investing
John Bogle's manifesto on why low-cost index funds beat everything else. Straight from the founder of Vanguard.
View on AmazonSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.
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