There is a lot to think about when creating an estate plan. Some people contact us because they don’t yet have a plan in place. Others, however, want to make changes that will benefit them and/or their loved ones.
Regardless of your situation, you should consider the pros and cons of a will and living trust. Furthermore, you need to compare the two, making a decision as to which option is best for somebody in your position.
Most people start out by creating a will. This is the most common and basic estate planning tool.
A living trust is perfect for some, but a waste of time and money for others. As you compare a will and a living trust, here are the types of questions you need to address:
- Are you ready to put in the additional work and take on the upfront expense? Generally speaking, a living trust will take more time and money to complete than a will.
- Do you have minor children? If so, a living trust is a beneficial strategy as it allows you to put provisions on when your child will gain access to any assets held by the trust.
- Do you have tax concerns? There are tax planning provisions to consider, with a trust making it possible for your heirs to save money upon your passing.
- Are you comfortable keeping a watchful eye on your estate plan? A living trust will require your attention from time to time. If you don’t have the time or desire to monitor your trust, while also transferring assets into it, a will may be the better option.
These are just some of the details to consider when comparing a will and living trust. The decisions you make now will impact you and your family later in life. For this reason, you should only make choices when you are 100 percent confident with what you are doing.