A Will is a legal document that directs the Probate Court as to how your assets are to be distributed at your death. If you do nothing else, a Will virtually guarantees that any assets owned by you in your individual name at your death will go through Probate. A Will can be changed or canceled by you at any time during your life, for any reason. A Will only "speaks" at your death and provides no protection for you should you become incapacitated during life.
A Revocable Living Trust is a legal document that looks a lot like a Will. In fact, it does what most people think a Will does -- and much more. It is an accepted method of Estate Planning that has been used effectively (in one form or another) for hundreds of years. It is called "revocable" because it can be changed or canceled at any time during your life, for any reason. It is called a "living" trust because it is set up during your life.
A Revocable Living Trust is a legal document that looks a lot like a Will. In fact, it does what most people think a Will does -- and much more. It is an accepted method of Estate Planning that has been used effectively (in one form or another) for hundreds of years. It is called "revocable" because it can be changed or canceled at any time during your life, for any reason. It is called a "living" trust because it is set up during your life.
Make the Comparison
At your death ...
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No Plan
Probate: Court orders debts paid and assets distributed according to state law (which may not be what you want). No ability to make charitable bequests or engage in death tax planning.
Costs: Your estate pays all court costs and fees, estimated at up to 6%, or more, of the "gross value" of your estate. Time: Usually 9 to 12 months; possibly years for larger or more complex estates. Privacy: None. Probate proceedings are public. The details of your debts and assets are a matter of public record. Flexibility and Control: None. Your property is controlled by the probate process according to state law. Easy for anyone to contest. |
Will
Probate: Normally requires filing an inventory of assets with the Court and notification to creditors. After waiting period required by law, Court orders debts paid and assets distributed according to the Will.
Costs: Usually the same as with No Plan (could be less). Time: Usually the same as with No Plan (could be less). Privacy: None, same as with No Plan. Also, the terms of your Will (including the details of your beneficiaries) are a matter of public record. Flexibility and Control: Limited. Although you can change your Will at any time, it is a matter of public record and can more easily be contested. Family usually has no control over the probate process. |
Living Trust
No Probate: Your designated successor normally pays debts and immediately distributes assets according to the Living Trust.
Costs: Minimal to none. Time: Usually a few weeks for smaller estates; possibly a few months for larger estates. Privacy: Total privacy. A Living Trust is not a public record. Flexibility and Control: Total. You can change your mind at any time (even revoke your Living Trust). Your property is controlled by the terms of the Living Trust that is not a matter of public record and difficult to contest. |
If you become incapacitated during life ...
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No Plan
Probate: Court must name conservator/ guardian who oversees your care and must give records and reports to the Court.
Costs: Your estate pays all court costs and conservator/guardian and legal fees. Time: Court controls all finances and approves all expenses. Creditors are notified and claims filed. Privacy: None. Probate proceedings are public. |
Will
Probate: Same as with No Plan.
Costs: Same as with No Plan. Time: Same as with No Plan (could be less). Privacy: Same as with No Plan. |
Living Trust
No Probate: Your designated successor manages your financial affairs according to your instructions in your Living Trust.
Costs: Minimal to none. Time: Your successor may act immediately and without Court approval. Privacy: Total privacy. A Living Trust is not a public record. |