Is a Last Will and Testament or a Revocable Living Trust best for you and your estate plan? There are benefits to each document, but there are three differences too. These three differences may help you choose the document that best fit your needs.

Probate

Probate is the court-supervised process used to settle an estate and move property from the name of the decedent to that of the heirs. If you have a Last Will and Testament and any property that is titled solely in your name, your estate will have to endure probate.

A Revocable Living Trust allows you to fund your property into the Trust throughout your life. Upon your death items titled in the name of your Trust will pass easily to your heirs without a need for the costly and timely practice of probate. If, however, your estate is small, probate may not be that long and having a Will might be more cost effective for you.

Incapacity

It is important to have an incapacity plan to enable a friend or family member to oversee your assets if you should become mentally disabled. A Revocable Living Trust can be used for disability planning. When you create a Trust, you name a successor trustee. Your Trust is active while you are alive, so your trustee can step into position when needed. A Last Will and Testament does not go into effect until your death, so it cannot be used for disability planning.

Privacy

Do you prefer to keep your assets and heirs private? You can do so with a Revocable Living Trust. During the probate process, all probate documents including your Will become public record. Any person can view these documents and see what your estate contains. To protect your privacy and that of your heirs, you may prefer to use a Living Trust in your estate plan.

Tags: Wills and Trusts