8/9/17 Wills and Living Trusts
Both Wills and Trusts are devices which you can use to provide for the distribution of your estate upon your death. Deciding whether a Will or a Trust best fits your needs depends on your circumstances. A living Trust is a popular alternative to the traditional Will, but you should weigh the advantages and disadvantages of each before deciding on one form or the other.
|Probate||Subject to probate proceedings.
Out -of-state property requires probate proceedings in that state, as well.
Provides court supervision for handling beneficiary challenges and creditor disputes.
|Not subject to probate proceedings.
Avoids the cost of a second-state probate proceeding where there is out-of-state property.
No automatic court supervision to deal with disputes.
|Tax Savings||Same tax saving provisions available as are available in a Trust.|
|Management of your Assets||In addition to the Will, must use a Power of Attorney or Conservatorship to manage assets.||Allows you as the grantor to manage the Trust assets as long as you are willing and able.
Makes provisions for a successor trustee to take over in your place.
|Costs||Costs less to prepare a Will than a Trust. Cost to probate a Will can be substantial.||Costs more to prepare, fund and manage a Trust than to prepare a Will. But avoids probate costs if all assets were held by the Trust.|