Last Will vs. Living Trust

In determining if you should create a last will or a living trust, it is important to understand what happens after you pass away, including the legal considerations, the role of your executor, and the distribution of your specific assets. Whether you create a last will or a living trust, you will want to understand the fundamentals of these estate planning documents, which includes naming beneficiaries, specifying assets correctly, and addressing potential contingency plans. And consider the emotional aspect of preparing either document, including open communication with loved ones to help simplify and ease the process.

There are benefits of establishing a living trust, including avoiding probate, maintaining privacy, and providing more flexibility than a traditional last will. Living trusts allow for the easy transfer of assets and can be a valuable tool in incapacity planning. A living trust can facilitate the management of assets during your lifetime. And a living trust can be more advantageous than a last will, especially when dealing with complex and contentious family relationships or when you own multiple properties.

There are common misconceptions about last wills and living trusts. Last wills do NOT avoid probate. Living Trust are NOT only for wealthy people. A living trust can benefit people of various financial backgrounds by avoiding probate and streamlining the process of distributing assets after you pass away. While a last will can be cost-effective to create, a living trust is much more cost-effective in the long run as it avoids the high costs of probate and gives you and your loved ones the peace of mind that your estate will be administered in the easiest way possible.

Be sure to review and update your last will or living trust regularly, especially after significant life events, to ensure it remains aligned with your wishes and current circumstances.