Most people understand the importance of a will, but many are unfamiliar with Trusts. Both a will and a trust can be used to transfer your property when you die, but that is where the similarity ends. A living trust becomes operative during your lifetime whereas a will is operative only upon your death. A will is public information, while a trust is private. Therefore with a trust, no creditors, heirs or non-heirs who feel they deserve a portion of your estate and those just curious can review the public record of your estate.
With a will, but no trust your estate is subject to Probate. Probate is a long drawn out court procedure that manages, controls and eventually distributes the assets of ones estate. Probate is very expensive, with fees and costs that must be paid from your estate. The bottom line cost is estimated between 5 – 10% of your estate, depending on the size of the Gross value of the estate.
Loss on control
Probate takes the control away from the beneficiaries of the estate. I one dies with a will or without a will the probate process will control your estate and this can be very costly.Probate is time consuming
Probate can take up to three years or more and during this time the estate’s assets are frozen and cannot be distributed to the heirs. If your family needs money, the Court must approve any distributions beforehand.Tax consequences
A Living Trust can pass 1.35 million dollars (if you are married ) to your beneficiaries estate tax free, plus save probate fees.Advantages of a Living Trust
- Avoid probate and related costs
- Control remains in the estate, and preserves privacy
- Can reduce or eliminate estate taxes that run 37% to 55%
- Quick distribution of the estate
- Prevents appointment of a Conservator
What will you receive
You will receive a free consultation by a qualified attorney in estate and tax planning.
- A Living Trust
- A pour-over Will (to be used in conjunction with the Living Trust)
- A Certificate of Trust
- Personalized Estate Planning
- Required Powers of Attorney