Wills Vs. Trusts
Exploring the differences between a Will and Trust
Wills Vs. Trusts
Estate and Family Cost
With a Will
For a Will to have legal effect, the entire estate involved must be probated.
With a Trust
When drafted and funded properly, a Trust allows an estate to avoid probate.
Key Take Away: Avoid Probate with a properly funded and drafted Trust.
Financial Expenses
With a Will
Taxes and probate attorney’s fees, as well as probate fees, which often include the state inventory fee, accounting, appraisal, auction, personal representative and advertising fees.
With a Trust
Because a Trust allows an estate to be transferred without the probate process, the family suffers no financial loss from probate expenses. Trust and estate planning documents cost a mere fraction of the probate fees assessed to some families with Wills.
Key Take Away: Avoid Probate with a properly funded and drafted Trust.
Delays
With a Will
State law requires estates in probate to remain open for a period of time. During that time, anyone wishing to file claims on the estate may do so.
With a Trust
Without court involvement, families control the schedule of distribution of the estate. Therefore, a Trust can be settled at the family’s earliest convenience.
Key Take Away: Avoid Probate with a properly funded and drafted Trust.
Privacy
With a Will
To have any legal authority, a Will must be proved valid in Probate Court. When a family probates a Will, the document itself, the worth, and the content of the estate all become public record. The result is anyone may review or purchase copies of an estate’s probate file and decide whether to file a claim.
With a Trust
Trusts are private family documents. Even when proof of a Trust’s existence is recorded, information on the contents and worth of the estate, how it is divided and to whom it is distributed, all remains confidential.
Key Take Away: Avoid Probate with a properly funded and drafted Trust.
Control
With a Will
When a Will is submitted to probate, the judge determines who distributes the estate, who receives the assets, and how those assets are divided if the will is contested.
With a Trust
The “settlors” or creators of a Revocable Living Trust determine the party controlling their estate, who is known as their “trustee.” As settlors, they determine the beneficiaries, or who shall receive their estate.
Key Take Away: Avoid Probate with a properly funded and drafted Trust.
Revocable Living Trusts should be considered by all persons who want their loved ones to receive their estate without going through Probate.
Revocable Living Trust
Understanding the Probate Process
You can preserve your assets from the slow and expensive probate process through the creation of a Revocable Living Trust.
To fully understand probate, the steps involved with the probate process, and how to avoid probate all together we have an entire section dedicated to understanding probate.