Wills vs. Trusts: What You Actually Need in Your 20s and 30s

Everyone says you need a trust. Here are the actual differences — and when a simple will is all you need.

By Willy Team · October 28, 2025 · 5 min read

If you've ever mentioned estate planning to a family member or done any Googling, you've probably heard: 'You need a trust!' But do you, though?

Let's be real: trusts sound fancy and complicated. Wills sound... old-fashioned. So which one do you actually need when you're in your 20s or 30s?

Spoiler: Most of us need a will, not a trust. But let's break it down so you can decide for yourself.

What's the Difference Between a Will and a Trust?

A will is a legal document that says who gets your stuff when you die. It names beneficiaries (those who inherit), an executor (person who carries out your wishes), and guardians for any minor children or pets. Wills go through probate—a court process that validates and executes the will.

A trust is a legal entity that holds your assets while you're alive and distributes them after you die. You transfer ownership of your assets (house, investments, accounts) to the trust. A trustee manages the trust according to your instructions. Trusts can avoid probate and offer more control over how and when assets are distributed.

Think of it this way: a will is instructions for what happens after you die. A trust is a container that holds your assets both during your life and after.

When You Need a Will (Most of Us)

A will makes sense if you:

Have basic assets (bank accounts, car, personal belongings, maybe a 401k)
Want to name guardians for your kids or pets
Have a modest estate (under $1-2 million in most states)
Aren't worried about privacy (wills become public during probate)
Want the simplest, most affordable option

For the vast majority of us in our 20s and 30s, a will covers everything you need. Your wishes are on paper, your loved ones are taken care of, and your stuff goes where you want it to go.

Probate isn't as scary as you'd expect, especially for simple estates. In many states, small estates can go through simplified probate processes that are quick and inexpensive.

When You Might Need a Trust (Less Common for Young Adults)

A trust might make sense if you:

Own real estate in multiple states (probate happens in each state where you own property)
Have significant wealth ($2 million+ in assets)
Want to avoid probate entirely (for privacy or speed)
Have complex family situations (blended families, special needs dependents)
Want more control over distributions (e.g., trust pays out when beneficiaries reach certain ages)
Own a business with multiple partners or complicated ownership

Trusts are more expensive to set up—often $1,500-3,000+ with a lawyer—and require ongoing management. You have to actually transfer your assets into the trust (re-titling property, changing account ownership), which takes time and effort.

If you don't properly fund the trust (transfer assets into it), it doesn't work. Everything left outside the trust still goes through probate.

The Truth About Probate

The most common reason to choose a trust is to 'avoid probate.' But probate isn't inherently bad, especially if you have a simple estate.

Probate is:

A court-supervised process that validates your will
Typically takes 6-12 months for simple estates
Costs vary by state (some have simple, affordable processes)
Public record (anyone can see what you owned and who inherited)

Probate is NOT:

Automatically expensive (small estates often qualify for simplified probate)
Always lengthy (depends on estate complexity and state)
Something that takes all your money (fees are usually a small percentage)

In many cases, the cost and hassle of setting up and maintaining a trust outweigh the benefits of avoiding probate—especially when you're young and don't have complex assets.

What About a 'Living Trust'?

You might hear about 'living trusts' (also called 'revocable living trusts'). These are trusts you create while you're alive and can modify at any time.

Living trusts are popular because they:

Avoid probate
Remain private
Can be changed whenever you want
Provide continuity if you become incapacitated (your trustee can manage your affairs)

But they also:

Cost significantly more to set up than a will
Require transferring all your assets into the trust
Need ongoing maintenance as you acquire new assets
Don't avoid estate taxes (despite what some salespeople claim)

For most young adults, the benefits don't justify the cost and complexity.

Can You Have Both?

Yes! In fact, even those with trusts usually also have a 'pour-over will' that catches any assets not in the trust and directs them into it.

You might start with a will and add a trust later when your financial situation becomes more complex — a will in your 20s, then a trust in your 40s when you own property in multiple states or have significant investments.

There's no rule that says you can only have one or the other.

Our Recommendation for Young Adults

Start with a will. Here's why:

1. It's affordable and simple ($79 for a digital will vs. $1,500+ for a trust)

2. It covers all the essential stuff you need to document

3. You can always create a trust later when your situation gets more complex

4. Most of us in our 20s and 30s don't have assets complicated enough to justify a trust

Don't let anyone convince you that you need a trust when a will will do. Estate planning attorneys sometimes push trusts because they're more profitable. Online services sometimes upsell trusts for the same reason.

But the truth is: if your estate is simple, you're not trying to avoid probate for specific reasons, and you don't have millions in assets, a will is the smart, practical choice.

Start with a will

Get a will now. It takes 10 minutes, costs less than a nice dinner, and gives you peace of mind. You can always upgrade to a trust later if your life gets more complicated.

A simple will is infinitely better than no estate plan at all — which is what 67% of Americans currently have.

You're young, but you're not invincible. Protect what matters.