Wills versus Living Trusts
A will is like a letter to the judge when you die.
“Dear Judge, when I die, this is who I would like to be in charge, and this is where I would like my stuff to go.”
Wills go through probate court, but they can override some of the default state laws which dictate where your estate assets will go and who will be charge.
Living trusts take the government and court system out of your plan…
If you would like to plan to keep your affairs out of the court system, the living trust is the estate plan for you.
When you create a living trust, you take the government and court system out of your plan, and write your own, comprehensive incapacity and after death “rule book.” Living trusts can prevent a guardianship, conservatorship, and after-death probate proceeding.
A revocable living trust can be changed or revoked by you anytime during your life.
All of your assets are substantially transferred into the trust during your lifetime. What you transfer into the trust will be determined by what you are trying to achieve.
The living trust is used as the mechanism to manage your property before and after your death, as well as state how those assets, and the income earned by the trust, should be distributed after your death.
If you should become incapacitated or disabled, the trust is there to manage your financial affairs.
Most of our client prefer to keep their affairs private, and not have their family and themselves subject to the court system and default state laws.
Reasons why you might want to engage in trust based planning include:
Avoiding the Probate Process
If privacy is important to you, a trust can avoid the probate process.
Avoiding Probate in Other State(s)
If you own property in more than one state, a trust can eliminate the need for probate proceedings in the state where the property is located.
Protect Beneficiaries from Loss
You want to protect your beneficiaries from loss of their inheritance from divorce, creditors, and predators.
Manage Affairs During Times of Incapacity
You want to have a mechanism in place to manage your affairs during any periods of disability/incapacity.
Make Your Wishes Harder to Contest
You want to make it harder for someone to contest how your property is to be distributed upon your death.