If you have started researching estate planning, you've probably encountered the Will versus trust debate. It can feel confusing: Are they the same thing? Do you need both? Which is better? The answer isn't one-size-fits-all, but let us help you understand the key differences and when each tool serves your goals best.
What Is a Will?
A Will is a legal document that directs how your property is distributed after your death. It also allows you to name a guardian for minor children and designate an executor (the person who administers your estate).
However, Wills have limitations. They must go through probate, a court-supervised process that's public, time-consuming, and costly. A Will takes effect only after your death, so it doesn't help if you become incapacitated. And unlike trusts, wills offer limited flexibility in controlling how and when your beneficiaries receive their inheritance.
What Is a Trust?
A revocable living trust is a legal arrangement where you (the settlor) transfer property into a trust during your lifetime. The trust owns the property, and a trustee manages it for the benefit of your beneficiaries. You can be the trustee and the beneficiary of your own trust while you are alive.
The primary advantage of having a trust is that any assets owned by the trust avoid probate entirely. When you pass away, the trustee simply distributes assets according to your instructions—no court involvement, no public record, no delay. Trusts also offer greater privacy and flexibility in how to direct distributions to your post-death beneficiaries. You can specify exactly how and when beneficiaries receive money, whether in a lump sum or over time. You can also set conditions, like requiring a child to pursue an education or be employed in order to be eligible for distributions from the trust.
Key Differences: A Quick Comparison
Probate: Wills require probate; trusts avoid it. Probate typically takes 9-18 months and costs 3-7% of the estate value. Trusts are administered privately and can be administered in weeks or months.
Cost: Wills are slightly cheaper to draft initially but trusts save significant money long-term by avoiding probate costs and expenses.
Control During Incapacity: A Will does not help if you become incapacitated. A trust allows your successor trustee to manage your property and support you during incapacity.
Privacy: Wills are public record once submitted to the probate court; trusts are private documents.
Flexibility: Wills offer limited flexibility once executed. Trusts allow ongoing adjustments and detailed instructions for distribution.
Do You Need Both?
If you are creating a revocable living trust, then yes. A revocable living trust owns your major assets and avoids probate. However, you should also have a 'Pour-Over Will' that captures any assets not funded into the trust at death. This safety net ensures nothing falls through the cracks. You should also create a separate financial power of attorney and health care directive.
For some people—those with small estates, no real property, and simple family situations—a Will alone may suffice. For most people, a plan centered around a revocable living trust is the smarter choice.
Special Trust Types
Beyond basic living trusts, Nevada law allows several sophisticated trust strategies. An A-B trust (also called a bypass trust) uses portability and trust structure to minimize estate taxes for married couples or can provide protection for one spouse’s children in a blended family.
A Nevada Self-Settled Spendthrift Trust (a/k/a Domestic Asset Protection Trust or DAPT) provides asset protection from creditors—a powerful tool if you work in a liability-heavy profession or simply want to shield assets from your creditors.
Conclusion
The choice between a Will and a trust isn't either/or—it's about layering the right tools for your situation. For most Nevada residents with any substantial assets or family complexity, a revocable living trust is the foundation, paired with supporting documents like powers of attorney and a Pour-Over Will to create a complete estate plan. Talk to an experienced estate planning attorney to design a strategy suitable for your specific situation that protects your family and preserves your wishes.
About the Author
Ronnie T. Goodwin leads the estate planning department with Leavitt Law Firm in Las Vegas, Nevada. To schedule a consultation or find out more information, visit www.leavittlawfirm.com.