ADVANTAGES

DISADVANTAGES

Living Trust

• A living trust is a cost-saving device: in most states, it allows you to avoid the expense and delay of probate proceedings, which can take up to 3 years to complete and eat up 10% of the value of your estate.
• If you own property in another state, a living trust eliminates the need to probate that property in that state.
• A living trust can immediately transfer management of your property if you become incapacitated either physically or mentally. There is no need to go to the court to appoint a guardian or conservator.
• A living trust protects your privacy; it remains confidential and does not become a matter of public record.
• A living trust enables you to name someone you trust to manage trust property for young beneficiaries.

• Setting up the trust requires quite a bit of initial paperwork and can be expensive.
• Setting up the trust also requires you to transfer ownership of all the property you wish to place in the trust. This may include revising title documents.
• You may run into some difficulty when you want to refinance property that is in your living trust.
• Creditors do not have a final cut-off date for bringing claims against your trust.
• You cannot designate a guardian for any minor children in a living trust (but this may be done easily in a will that supplements your trust).

Will

• Setting up a will is much simpler and less expensive than setting up a living trust.
• Creditors face a final cut-off date for bringing claims against your estate.
• You may name a guardian for your minor children in a will.
• You do not need to transfer any property to another entity in order to create a will or make it valid.

• Upon probate, a will becomes a matter of public record.
• Probate, which is necessary for the implementation of your will, can be both costly and slow.
• A will does not provide for transfer of management of your assets or property if you should become physically or mentally incapacitated.