Is a Will Enough, or Do You Need a Trust?

Many decades ago the traditional Will was the most common estate planning tool. The Living Trust has been around for a very long time but did not begin to gain widespread recognition until the 1960’s. The Living Trust train of popularity has been steaming ahead ever since.

Despite the popularity of Trusts, many people beginning to think about estate planning pose a very valid inquiry, asking “Why do I even need a Living Trust ? What is wrong with having a Will instead ?” There are several compelling differences with regard to the utility of a Will vs a Living Trust.

A Will alone does not avoid the probate of many assets, such as a home. Thus for example, if the creator of a Will gave their home to daughter Mary, then Mary may never see the inside of that home again. That Will be probated at huge expense of tens of thousands of dollars, if not over a hundred grand, and additionally the Court will allow a period of time for claims to be made, to include claims for medical services. In short, for all real property such as a home, a Will is probated and a Trust is not. The Trust would also allow Mary to retain the home instead of its forced sale through the court resulting from the need to cover the exorbitant court fees and costs.

A Trust also contains conservatorship provisions for those of us who sadly require conservatorship, whether due to crime or accident at a younger age, or the later-in-life onset of dementia and Alzheimer’s disease. A conservatorship proceeding can consume years if not decades of the ill person’s life and the cost can consume many estates. A trust contains powerful provisions that allow for the control of your estate while you are living yet severely incapacitated and thus at risk of the endless stream of fraudsters and scam artists who prey on those hobbled by illness. A Will lacks such power and flexibility. Our comprehensive trust packages include essential Power of Attorney documents to protect you during incapacity.

A Living Trust also serves as an impenetrable barrier to the rapidly rising incidence of loan fraud – this protection is achieved by reason of the recording of a trust transfer deed. Your home is a target now for loan fraudsters for the simple reason that the home is merely titled in your individual names and your confidential information is so easy to obtain. But when a home is titled into a Trust, loan fraud becomes impossible for the reason that the home is no longer titled in your individual names. Protect your home with our Trust Transfer Deed services that make loan fraud impossible.

Continuing on, a Living Trust contains provisions which provide for the protection of your estate resulting from government subsidized medical services. If there is only a Will in place your estate lacks that safe harbor protection.

And finally for married couples, a Living Trust completely avoids the need for the filing of a spousal petition upon the death of the first spouse. And further, upon the first spouse’s death, only a Living Trust can provide you with the security and peace of mind that, upon the passing of the second spouse, your assets and wealth will eventually pass to your chosen beneficiaries. If a Trust is not in place, the last living spouse can do absolutely whatever they want with the estate. Unless a Trust is in place your estate is not secure.

As you can see the power of a Living Trust is enormous. Ready to protect your estate? Explore our complete living trust package or read more about everything you need to know about living trusts. Please feel free to contact Ironclad Living Trusts to begin your estate planning journey.