When planning for the future, many people ask whether they should create a revocable living trust or a will. Both tools outline how your assets will be managed and distributed, but they work in different ways. The right choice depends on your goals, the size of your estate, and how you want your loved ones to handle things after your passing. Understanding these differences can help you make informed decisions and build a plan that fits your situation.
What Is a Revocable Living Trust?
A revocable living trust is a legal arrangement that lets you transfer ownership of your property to a trust during your lifetime. You can serve as your own trustee, giving you continued control over the assets while you’re alive. After your death, a successor trustee distributes those assets according to your instructions, without going through probate.
Because the trust is revocable, you can modify or dissolve it at any time. This flexibility makes it a popular estate planning tool in California. People often use living trusts to:
- Simplify the transfer of property to beneficiaries
- Maintain privacy, since trusts aren’t part of the public record
- Avoid the time and costs associated with probate
- Plan for incapacity by naming a trusted successor to manage affairs
However, setting up and maintaining a trust requires more paperwork and ongoing attention than a simple will.
How Does a Will Work?
A will, formally called a last will and testament, spells out how you want your property, money, and personal items to be distributed after you pass away. It also allows you to:
- Appoint a personal representative to carry out your wishes
- Name guardians for minor children or dependents
- Leave specific gifts or charitable donations
Unlike a trust, a will only becomes effective after your death and must go through probate. The court supervises this process to confirm the document’s validity, settle debts, and distribute assets. While probate ensures oversight, it can also delay distributions and make the process public.
Key Differences Between a Trust and a Will
Both tools play important roles, but they differ in several meaningful ways:
| Feature | Revocable Living Trust | Will |
| When It Takes Effect | During your lifetime | After your death |
| Probate | Avoids probate | Must go through probate |
| Privacy | Private document | Public record |
| Setup Complexity | More complex and costly | Easier and less expensive |
| Control During Lifetime | Full control, with flexibility to change | Only takes effect after death |
| Incapacity Planning | Provides continuity if you become incapacitated | Does not address incapacity |
While trusts can simplify asset transfers and reduce administrative delays, wills may be sufficient for smaller estates or straightforward plans.
Choosing Between a Will and a Living Trust in California
You might be wondering which option is better for you. The answer depends on your financial picture and personal priorities.
A living trust may make sense if you:
- Own real estate in multiple states
- Want your family to avoid probate
- Prefer privacy in handling your estate
A will may be more practical if you:
- Have a smaller estate with few assets
- Need a quick, low-cost plan
- Don’t mind the probate process
Many Californians use both—a trust for major assets like a home or investments, and a will to address personal items or guardianship matters. An attorney can help you coordinate both documents so they work together effectively.
Avoiding Common Misunderstandings
It’s important to note that assets in a revocable living trust are still part of your taxable estate. While a trust can simplify administration, it doesn’t eliminate estate taxes. Also, remember that creating a trust is just the first step; you must transfer (or “fund”) your assets into it for it to take effect. Failing to retitle property properly can undermine the trust’s benefits.
Building the Right Estate Plan for Your Future
Estate planning is about building a thoughtful strategy that safeguards your family and ensures your wishes are carried out. Whether you decide on a revocable living trust, a will, or both, we can guide you through every step and ensure your documents reflect your intentions.
Get Help Choosing Between a Will and a Trust
If you’re unsure which estate planning approach best fits your situation, we can help you review your options and build a plan that gives your family clarity for the future. Contact OC Wills & Trust Attorneys today to schedule a consultation and learn how we can help you create the right plan for your needs.
