Have you wondered which might be more appropriate for you; a #Will or a #Revocable Living Trust? Here are some of the advantages and disadvantages of each.
WILL PROS:
- A Will appoints your executor and lists your beneficiaries.
- In a Will, your investments/assets can remain titled in your name.
- A Will designates how your assets are to be distributed.
- A Will is less expensive than a Trust and can be easily set up.
- If minor children are involved, a Will appoints a guardian.
WILL CONS:
- There are #probate fees. In PA the fees range between $200 to $1,000 depending on the size of the estate. However, PA probate, compared to other states, is normally easier.
- Since everything needs to be court approved, it can be a long drawn out procedure.
- There is a lack a privacy with a Will. A Will is submitted to the Register of Wills in the proper county. Anyone can submit a request to the Register of Wills to see a copy.
TRUST PROS:
- A Trust will protect your heirs for creditors, particularly any divorcing spouses.
- A Trust can carry your assets through the generations because it directs when and how your beneficiaries will receive their inheritance.
- A Trust is private; it is not a public document.
- At the time of death, the designated successor trustee receives full control over the Trust to distribute the estate as set forth in the Trust.
- Trusts can accomplish a specific purpose; for a relative’s education, to a favorite charity or to guard against an heir’s reckless spending.
TRUST CONS:
- A Trust is more expensive that a Will.
- Assets in the Trust need to be retitled to conform to the name of the Trust.
- A Trust is tedious to create, taking both more time and effort.
- Guardians cannot be appointed in a Trust.
This is an important subject and the above is by no means a comprehensive list of all that is available to you in either a Will or a Trust. Speaking to an experienced Wills and Trust attorney is more than likely an essential step to take in this process.