1. With a living trust you have the most control over what happens to your estate. You can provide for your spouse and your minor children. You can protect children with special needs or those who aren't financially responsible. And you can avoid the expense and delays of probate.
held by the trust will not need to be probated.
3. Legal fees for
probating an estate are usually much higher than the fees for administering a
trust. Probates can also take a year or longer to complete, but a trust
administration usually can be completed in a much shorter time. However,
the initial cost of a trust is greater than for a will.
4. If a trustor becomes mentally incompetent, the successor trustee can
take control of the trust and avoid the cost of a conservatorship in most cases.
Conservatorships are often used in situations in which someone can no longer
manage his or her own financial affairs or personal care. A conservatorship is a
court-supervised proceeding that can involve substantial legal fees.
5. The trust is revocable during the lifetimes of the trustors.
6. With a living trust
you will have peace of mind knowing that your wishes will be carried out.
Questions About Living Trusts.
A will is a legally-binding statement detailing who will
receive your property at your death. It also appoints a
legal representative to carry out your wishes. However, the
will covers only probate property. Many types of property or
forms of ownership pass outside of probate. Jointly-owned
property, property in trust, life insurance proceeds and
property with a named beneficiary, such as IRAs or 401(k)
plans, all pass outside of probate.
An Advance Healthcare Directive designates someone you
choose to make health care decisions for you if you are
unable to do so yourself. It may instruct your health care
provider to withdraw life support if you are terminally ill
or in a vegetative state or it may provide instructions if
you are in a less severe state of health, but are still
unable to direct your health care yourself.
Durable Power of Attorney
durable power of attorney allows a person you appoint --
your "attorney-in-fact" -- to act in your place for
financial purposes when and if you ever become
person you choose will be able to step in and take care of
your financial affairs. Without a durable power of attorney,
no one can represent you unless a court appoints a
conservator or guardian. That court process takes time,
costs money, and the judge may not choose the person you