Living Trusts vs Wills
What’s the difference? It comes down to one word… Probate! It is important that individuals and families understand that in general, administration of a living trust is less expensive, takes less time, and is more private than probate; the court process which establishes the validity of a will. While trust administration is much less costly, it is important to note that the successor trustee may need some help from an attorney. Below is some general information to get you started.
How Much Money is Saved by Avoiding Probate?
A typical trust administration will cost about one-third of what the probate will cost. Because there is no court supervision, the Trustee may distribute assets to the beneficiaries immediately. Except for required notices and information to the beneficiaries, the process is completely private.
How is a Living Trust Different from a Will?
A living trust is similar to a will because it explains how your property should be distributed after death. Here’s where it’s different! Your assets are placed in trust during your lifetime, yet you remain in control of your assets for as long as you live. With a living trust, the estate usually doesn’t have to go through the probate process, thus avoiding costly court fees and the significant time involved; often up to twelve months.
How to Choose Between a Living Trust and a Will?
Frankly, it comes down to this: Pay some now to set up a Trust… or pay more later to go through the cost, hassle and time-consuming process of Probate. I am happy to advise you on the various advantages and disadvantages of a living trust and handle the legal processes if you decide that it’s the right choice for you. Feel free to be in touch with your questions. And remember to print out the Consultation Certificate.
Read more about the Benefits of a Living Trust
Read more about the Realities of Probate