Are you interested in hiring an estate administration attorney in order to get a living trust created, but you are not sure if it is a better option than a will? To make an informed decision you should take the time to learn the advantages and disadvantages of having a living trust over a will:
Advantages Of A Living Trust
To find to why some people opt for living trusts, and if it's going to be the right solution for you, read on for their advantages:
- No need for probate: when opting for a living trust, there will be no requirement for a probate period where the validity of your wishes are verified. This means there is no question if your wishes will be granted or not.
- Privacy: a will must be filed publicly and that means privacy is not assured. Whereas, if you opt for a living trust then you can keep your matters private since no paperwork has to be filled publicly.
- Inter-state control: the laws relating to will's are different in each state, and that can be complicated with regards to getting your wishes granted if you have property in many different states. On the other hand, a living trust has an advantage because a trustee can be appointed that is based in a different state, and can therefore handle the assets that are in that state.
Disadvantages Of A Living Trust
To get a balanced view of living trusts you should consider their disadvantages:
- Potential for fraud: due to the fact that a living trust does not require a period of probate the trustees will not be verified for compliance of the trust agreement. This in turn opens the door for potential fraud. However, if you have selected the trustees carefully then this is not going to be a problem.
- Higher costs: a living trust can be costly to set up because the assets must be transferred into the trust, trust accounts created, stock re-registered and titles appointed to the trustees. This must be done because any assets that are not transferred to the trust will be put into probate at the time of death of the person who owns the assets.
- Limited in scope: there are some things that a will could arrange that a living trust cannot. This includes giving rights to a domestic partner whom you aren't married to, care for your children and the arrangements that must be made for your funeral.