Will or living trust: which one does your family need?
Both say who gets what. They differ in when they work, what they cost and whether a court is involved.
Families often come to the first call sure they need a trust, because a friend had one. Sometimes they do. Often a will, a power of attorney and up-to-date beneficiary forms do everything they need, for less than half the cost.
What a will does
A will names who receives your property, who carries out your wishes, and who raises your children if they're still minors. It takes effect only at death, and it goes through probate: the executor qualifies with the court, gives notices, files an inventory and accounts, and then distributes.
What a living trust does
A revocable living trust holds your property while you're alive, with you in charge. When you die or can't manage, the successor trustee you named takes over. Property in the trust passes without probate. But only property actually in the trust: the deed must be signed and the accounts retitled.
When a trust earns its keep
- You own real estate in more than one state
- You want an inheritance paid out over time, not all at once
- A child or grandchild has special needs or receives benefits
- Privacy matters to you: a trust stays out of the public court file
When a will is enough
If most of what you own already passes by beneficiary form, such as retirement accounts, life insurance and payable-on-death bank accounts, probate may have little to do. A will and a power of attorney may be all you need.
The best plan is the one that's signed and funded. A perfect trust that never gets the house deeded into it does nothing.
On a first call, we'll look at what you own and tell you which fits, and what each would cost at our flat fees.