When planning your estate, one of the biggest decisions homeowners face is how to transfer their property after they pass — through a trust or a will.
Both can ensure your home ends up with the right person, but they differ dramatically in cost, complexity, privacy, and timing.
Let’s break down the pros and cons so you can make an informed choice about what’s best for your situation.
What’s the Difference Between a Will and a Trust?
A will is a legal document that states who inherits your assets after you die. However, it only takes effect after your death and must go through probate — a court process that validates the will, settles debts, and distributes property.
A trust, by contrast, takes effect immediately after it’s created. When you place your home in a revocable living trust, the trust becomes the legal owner. You still control it while you’re alive, and upon your death, your designated successor trustee transfers the home to your beneficiaries — without going through probate.
|
Feature |
Will |
Trust |
|---|---|---|
|
Takes effect |
After death |
Immediately |
|
Probate required |
✅ Yes |
❌ No |
|
Privacy |
❌ Public record |
✅ Private |
|
Setup cost |
💲 Lower upfront |
💲💲 Higher upfront |
|
Control during lifetime |
Full |
Full (revocable) |
|
Court involvement |
Required |
Avoided |
Advantages of Putting Your House in a Trust
-
Avoids Probate: Your heirs skip the lengthy, expensive probate process.
-
Maintains Privacy: Wills are public records — trusts remain private.
-
Ensures Continuity: If you become incapacitated, your trustee can manage your home without a court’s involvement.
-
Faster Transfer: Assets in a trust can be distributed immediately after death.
-
Flexibility: Revocable trusts allow changes or cancellation anytime during your lifetime.
💡 Example:
If you pass away owning a home in your name only, your family must go through probate, which can take 6–12 months. If the home is in a trust, the property can transfer to your children in weeks.
When a Will Might Be Enough
A will may be sufficient if:
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You own only one property and have a simple estate.
-
You’re comfortable with your heirs going through probate.
-
You prefer a low-cost estate plan.
-
You don’t require complex rules for inheritance (like phased distributions or conditions).
A will also allows you to name guardians for minor children, which trusts don’t.
Combining a Will and a Trust
You don’t have to choose just one. Many people use both:
-
A revocable living trust manages major assets like your home.
-
A pour-over will acts as a safety net, ensuring that any assets not in your trust still go to your beneficiaries.
This combination provides maximum control, privacy, and flexibility.
Tax and Financial Considerations
Placing your house in a revocable living trust:
-
Does not change your property taxes or mortgage terms.
-
Keeps your eligibility for homeowner tax exemptions.
-
Still allows capital gains exclusions when selling.
However, if you create an irrevocable trust, you may lose certain tax benefits or control over the property. Always consult an estate planning attorney or tax professional before making the move.
Final Thoughts
If your top priority is to save your family time, stress, and court costs, a trust is often the better choice.
But if your estate is small, simple, and you’re fine with probate, a will might be all you need.
👉 The ideal solution depends on your assets, family situation, and long-term goals. For many homeowners, a combination of both provides the best balance of control and simplicity.
