Will or trust?  That is the question.

No, this is not the opening of a bad Shakespearean tragedy – it’s the question most of us have to answer when considering our estate plans.  Each of these asset transfer vehicles – a last will and testament (will) and a revocable living trust (trust) – has its advantages and disadvantages.  But here are the reasons why we recommend all our clients start with a revocable living trust as the basis of their estate plan.

1. Avoiding Probate

By far, the most common concern among our clients is avoiding probate.  There is a reason the probate process has such a bad rap.  It’s expensive, time-consuming, and can delay the distribution of estate assets for months or even years.  It also takes place under the microscope of the probate court and places the burden on your heirs to handle.  With a trust, there is no probate required, and your assets will pass to your beneficiaries quickly and smoothly – without paying an attorney thousands of dollars.

2. Privacy

When you probate a will, it becomes a matter of public record.  So all your creditors, employees, friends, and nosy neighbors can see the details of your estate, including your assets, beneficiaries, debts, etc.  Since a trust bypasses probate, all of your personal details and financial affairs remain private and out of public view.

3. Asset Organization and Management

With a living trust, all types of assets – including real estate, financial accounts, and business interests – can be consolidated in one place to allow streamlined management.  This arrangement makes it easy for your successor trustee to step in when the time comes to manage the trust’s assets.  This is particularly important if you own real estate in different states or countries.  Without these properties in a trust, probates in each jurisdiction would be required to transfer these assets to your beneficiaries.

4. Control and Flexibility

If you become incapacitated, your successor trustee can manage trust assets in your absence, avoiding the time and expense of having a court appoint a guardian or conservator.  This seamless transition of temporary power can be priceless.  And your living trust can be tailored to meet your specific estate planning goals, allowing you to control how assets are distributed to beneficiaries, even after you’re gone.

With all that said, the cost of an estate plan based on a living trust is higher than a plan based on a will.  But the cost of a living trust is not nearly as much as the cost of probate your heirs will avoid.  So, with a living trust, you are simply front-loading the reduced costs of asset transfer and removing the burden of handling the probate process from your heirs.  For most of our clients, this advantage is the deciding factor when it comes to choosing direction for their estate plan.

If you are currently weighing your estate planning options, TrustBridge Legal would be happy to help you decide if a living trust is right for you.  Contact us today for more information.