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Trust on the other hand does not need to go through probate and is not part of the public record (so no one knows anything about your beneficiaries or what assets you are distributing). There are no fees involved with trust. When you use a trust, your assets are passed according to the instructions you include in the trust document. You can choose to transfer your assets to your beneficiaries immediately after your death, or you can set up transfer dates in the future (such as milestone birthdays to ensure your beneficiaries are mature when they inherit).

It is important to understand that just because an asset does not go through probate does not mean that it avoids estate tax. Assets passed via a trust or will are included in the taxable estate. The federal estate tax currently applies only to estates worth more than $5.43 million. State estate taxes vary greatly with some states applying no tax and others applying the tax to estates of moderate amounts.

It is commonly recommended that if you create a living trust you should also have what is called a pour-over will. In case any property is mistakenly left out proof the trust, the pour-over will transfer those leftover assets to the trust.