Differences Between: Last Will & Testament and Living Trust
Your Last Will & Testament will go through a court supervised distribution process called: PROBATE!
A few disadvantages of going through probate often include...
- Impounded or frozen accounts
- Impounded safety deposit box
- Probate court cost (10%-30%, or more)
- Waiting period (months to several years)
- Attorney fees (typically 6% to 8% of total value of estate)
- Administration fees Public disclosures (makes good leads for con men who specialize in fleecing new heirs of their inheritance)
- With your Living Trust, some advantages of a Living Trust include...
- A Living Trust is settled without a court proceeding
- Process is not a matter of public record
- Process is quicker and cheaper than a Last Will & Testament
- A Living Trust is very difficult to challenge
- You, the Grantor, retain complete control of your affairs while alive
- Assets are directed through your Living Trust per your wishes upon your death
WHAT IS A LAST WILL and TESTAMENT?
A Last Will and Testament is probably the most important document the average person will ever sign. A Last Will is used to distribute property to beneficiaries, specify last wishes, and name guardians for minor children. It is an important part of any estate plan. Without one, the courts will make these critical decisions for you. With or without a Last Will and Testament YOU HAVE TO GO THROUGH PROBATE.
WHAT IS A LIVING WILL?
A Living Will is a type of advanced directive in which instructions are given by an individual specifying what should be done for his/her health in case he/she is no longer able to make those decisions. This document outlines important healthcare decisions in advance, such as whether or not to remain on artificial life support.
WHAT IS A LIVING TRUST?
A basic living trust allows property to AVOID PROBATE and to quickly and efficiently pass to the beneficiaries you name, without the hassles and expense of PROBATE COURT proceedings. A married couple can use one basic living trust to handle both co-owned property and the separate property of either spouse.