Wills
Trusts
Only require periodic review
Less expensive
Streamlined probate laws
Limited claim window for creditors
Less privacy
Potentially disgruntled beneficiaries
Time-consuming
Expenses
May need ancillary probate
Enhanced privacy
Avoids the need for probate
Faster process
Defined trustee succession
Potential for forgotten assets
Requires review
Expenses
Limited claim window for creditors
This is generally recommended once every five years or after any major life event to help ensure its provisions still align with your goals and desires.
Attorney's fees for preparing a will are typically lower than those for creating a revocable living trust.
Many states streamline their laws to simplify the process for estates that only contain real property. Many have updated their laws to limit the amount of information (such as lists of assets and asset values) that are made available to the public, increasing privacy for the decedent's beneficiaries.
What is probate?
The probate process is defined by state law referring to the court-supervised process of administering a decedent's estate and distributing the decedent's property to the beneficiaries specified in the decedent's will. The probate process provides heirs and other beneficiaries a formal process to bring concerns they may have about the will's validity to the court's attention.
Creditors—individuals or entities to whom the decedent may have owed money—have a limited period of time to present their claims.
The probate process in some states can be expensive due to attorney's fees, exceutor's fees and/or court costs.
Similarly, the probate process in some states can be time-consuming depending on the level of court involvement and the inability of courts to hear and rule on probate proceedings in a timely manner.
Probate is a formal legal proceeding and can open the door for a disgruntled beneficiary to challenge your will.
In many states, probate filings are a matter of public record, meaning there will be at least some loss of privacy for your estate and/or heirs and beneficiaries.
"Ancillary probate proceedings" may be required if you have real property located in multiple states.
This allows for seamless transition and continued asset management in the event you become ill or incapacitated.
After your death, the successor trustee can begin the trust administration process immediately and without court approval.
Once your transfer your assets into the trust, they are no longer owned in your name and instead the property of the trust and will be transferred to your heirs and beneficiaries in accordance with the terms of the trust. If structured correctly, a revocable living trust avoids the need for a probate case to be filed after your death.
• Faster and less expensive administration: Due to the lack of court involvement, the trust administration process can be less time-consuming and less costly than probate.
• No ancillary probate: It avoids the need for additional out-of-state probate proceedings (i.e. "ancillary probate") in other states where you may own real property.
The revocable living trust structure is private, so only the successor trustee(s) and beneficiaries have access to information about the terms of the trust and assets held by the trust.
In contrast to probate, in which there are mandatory creditor notification procedures, trustees can generally choose (depending on state law) whether or not to file a notice informating creditors that the trust is being administered. This can limit the period of time in which creditors can present their claims.
Estate plans that utilize a revocable living trust are generally more expensive than plans that use wills alone due to higher legal fees as well as fees for the re-titling of property to transfer it into the trust. A revocable living trust must still be administered upon your death, typically resulting in attorney fees and other associated costs.
A revocable living trust requires review during your lifetime to help ensure the trust is funded properly.
There is the possibility that assets may be accidentally left out of the revocable living trust and may therefore be subject to the probate process.
Wills
Trusts
Benefits
drawbacks
Wills
Trusts
Benefits
drawbacks