It depends. Both devices could work to accomplish your goals. With every estate plan, it needs to be personally drafted for you and so you would want to sit down and talk with an attorney at least by phone. Most of us who do estate planning do so for people across the estate and across the country. David Rich out of Boulder, CO on Avvo is excellent. I have been doing estate planning over the past 22 years. I could give you more names and credentials if you would like.
The information provided in this answer does not create an attorney-client relationship. If you are interested in his legal services, feel free to call Chris at (303) 409-7635 at his law office in the Denver Tech Center. All initial consultations are free of charge.
Neither a Living Revocable Trust or a Will enables you to protect assets from your ex-wife or from a Medicaid lien.
If you are not under a court order to name your ex-wife as a beneficiary of your life insurance, Colorado law voids the beneficiary designation upon the dissolution of marriage. However, to be on the safe side, I'd still change the beneficiary.
Unless your estate is greater than $5,250,000 your estate will not be subject to the federal estate tax. However, you may want to establish an estate plan than would avoid probate and minimize your exposure to a Medicaid lien. There are also methods available to redistribute assets in order to meet the "spend down" of resources that Medicaid requires.
These are complicated issues and procedures. Your first step is to locate an experienced estate planning attorney who also is knowledgeable about Medicaid Planning.
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As Attorney Littlepage states, neither a Living Revocable Trust or a Will enables you to protect assets from a Medicaid lien. While an Irrevocable Trust might work for Medicaid protection, provided it is established more than five years before you make application, the terms and conditions that are required are so onerous and restrictive that most people don't want to give up that much control. One of the simplest and best tools for protecting your assets from Medicaid recovery is a durable general power of attornet with unresticted gifting powers. This isn't something you will find on line and I suggest you consult with an experienced elder law attorney to review your options. You are lucky that there are several good ones in Grand Junction.