7 Benefits of Using a Trust Instead of a Will

When planning for the future of your assets, understanding the benefits of using a trust instead of a will can significantly impact how your estate is managed after you’re gone. While wills have traditionally been the standard document for estate planning, trusts offer several advantages that many people find compelling. Trusts allow your assets to bypass the probate process—the often lengthy and public court proceedings that wills must go through. This means your beneficiaries may receive their inheritances faster and with greater privacy. Additionally, trusts can provide more specific control over how and when your assets are distributed, potentially offering tax advantages and protection from creditors.

A financial advisor can help you create an estate plan to help protect your assets.

1. Lowering Taxes for Very Wealthy Estates

If your estate is worth more than $13.99 million (as of 2025), it will owe estate taxes on assets above this cap. This amount may be lowered based on your lifetime gift giving.

For very wealthy households, managing estate taxes can be an issue. An irrevocable trust can help. When you put assets into an irrevocable trust, they are no longer in your possession. As a result, those assets won’t enter your estate when you die and your trust can freely disperse those assets to its beneficiaries.

2. Managing Multi-State Transfers

Managing an estate across multiple jurisdictions can be complicated, expensive and time-consuming. This can particularly come up in cases where you own real estate in several states or outside your state of residence.

If you put these assets into a trust, you can avoid these multi-jurisdictional issues. Your trust will administer the assets or property, distribute them as necessary or manage joint occupancy as appropriate. In particular, if you establish the trust in the same jurisdiction as your estate, you will not need to manage the probate laws of multiple states.

3. Avoiding Probate and Delays

A woman researching estate planning strategies to avoid probate.

One of the most common reasons for households to establish a trust is to avoid the probate process. Depending on your jurisdiction and the size of your estate, probate can take several months to several years. This adds considerable time and expense to your heirs receiving their assets.

While you will always have an estate that goes through some form of probate, any assets that you put into a trust could avoid this process. Instead of going through probate court, those assets will be distributed directly and, ideally, immediately by the trustee.

4. Splitting Ownership Among Heirs

You might have assets that you would like your heirs to share. This is particularly common for real estate, like a family home or vacation property and treasured heirlooms. A will can help accomplish this by distributing joint ownership, but this can create disputes, potential for sale and the new owners may further subdivide the property.

A trust can simplify matters. By putting these assets into a trust, you can specify that the trustee will manage this property for the use and benefit of your heirs. That will preserve their access to the asset(s) while also keeping a single owner who cannot sell the property.

5. Distribution of Complex or Ongoing Assets

In a similar vein, trusts are useful for distributing complex assets or managing ongoing ownership. With a trust, you can appoint a trustee with the specialized knowledge or experience necessary to manage a complicated asset. You can also establish an indefinite trust, ensuring that your heirs will continue to receive the benefits of an ongoing asset without selling it.

For example, say that you have income-generating assets and you would like to ensure that your heirs continue to receive the benefit of this income (for example, a series of patents or rental properties). You could appoint a trustee capable of managing those properties, ensuring that your heirs receive competently managed income.

6. Making Transfers While You’re Alive

A trust is a good vehicle for making asset transfers while you’re still alive. Many people wish to see their loved ones enjoying the value of their estate. In those cases, a will does you no good. Unilateral gifts might help you achieve this goal, but those are best for one-time transfers. They are less valuable for ongoing distributions.

Transferring assets during your lifetime through a trust can offer substantial tax advantages. By strategically gifting assets below annual exclusion limits, you can reduce the size of your taxable estate while benefiting your loved ones immediately. This approach can be particularly valuable for high-net-worth individuals looking to minimize estate taxes.

7. Increased Flexibility

Trusts offer significantly more flexibility than wills when it comes to managing and distributing your assets. Unlike wills, which typically provide straightforward distributions after death, trusts can be structured with specific conditions and timelines that match your unique family situation and financial goals.

With a trust, you can create customized distribution schedules based on beneficiaries reaching certain ages or milestones. For example, you might arrange for a beneficiary to receive portions of their inheritance at ages 25, 30 and 35, rather than all at once, helping them develop financial responsibility over time.

Trusts can be specifically designed to provide for beneficiaries with special needs without jeopardizing their eligibility for government benefits. This specialized planning ensures your loved ones receive both your financial support and maintain access to essential public assistance programs.

Bottom Line

A woman comparing the benefits and drawbacks of using a trust and a will.

When planning your estate, understanding the benefits of using a trust instead of a will can make a significant difference for your loved ones. Trusts offer privacy that wills cannot, as they avoid the public probate process that exposes your assets and beneficiaries to public scrutiny. While setting up a trust requires more upfront effort and expense than a simple will, the long-term benefits often outweigh these initial costs.

Tips to Set Up Trusts

A financial advisor can help you build a comprehensive retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Tax management is one of the most popular reasons to build a trust, but getting this right takes a lot of planning and legal counsel. If you’re looking to minimize the taxes on your very wealthy estate, here’s how an irrevocable trust can help.