When Does It Make Sense to Create a Trust vs. Just a Will?
By Brian Wheeler
Hint: You don’t need millions of dollars to benefit.
Estate planning is one of those topics we all know we should take care of — yet it often gets pushed aside until “someday.” And if you’re like many families, you may believe that estate planning really only becomes necessary once you’ve accumulated significant wealth.
In reality, the decision between having just a Will versus establishing a Trust has less to do with how much you own today, and more to do with what — and who — you are protecting.
Why a Will Alone May Not Be Enough
A Will is an important document. It outlines your wishes and names who will care for children (guardianship). However, a Will:
Must go through probate (a public, court-supervised process)
Can take months — sometimes longer — to settle
Can become costly and administratively burdensome
Doesn’t control how assets are used over time
A Will is still foundational, but on its own it may not provide the level of clarity, speed, and protection many families want.
Why a Trust Often Makes Sense — Even for Younger Families
A Trust allows your assets — including life insurance proceeds — to pass privately, efficiently, and according to your instructions without court involvement.
A Trust becomes especially valuable when:
Children enter the picture
You purchase a home or build savings
You establish life insurance to protect your family
Most people are surprised to learn:
The moment you have children and a life insurance policy, your “estate” is no longer small.
For example, a young couple with:
$50,000 in savings
A home with equity
$1,000,000 in life insurance
…effectively has a seven-figure estate for estate-planning purposes and may want control over how and when children receive assets — not a lump sum at age 18.
A Trust allows you to:
Choose who manages assets for your children
Decide when and how funds can be used (education, health, etc.)
Avoid unnecessary delays or court involvement
Reduce emotional and financial stress for your family
Real-World Example
A young family with two kids and a $1.5M life insurance policy unexpectedly loses one parent.
Without a Trust:
Life insurance proceeds could go through probate
Costs and delays impact access to funds
Court determines ongoing oversight
Children’s inheritance may be distributed outright at 18
With a Trust:
Life insurance proceeds flow immediately to the Trust
Trustee follows your instructions
Children’s needs are funded smoothly
Assets are protected and distributed responsibly
Bottom Line
You don’t need to be “wealthy” to benefit from a Trust. Creating a Trust is about control, protection, and peace of mind — not just dollars.
If you have children, life insurance, or a growing financial life, a Trust is worth serious consideration.
Next Steps
If you’d like help reviewing your current plan, discussing whether a Trust makes sense, or simply getting started, we’re here to help ensure your family is protected and your wishes are clear.