The Pros and Cons of Living Trust vs. Will in California
When it comes to estate planning, there are a lot of different options to consider. One of the big decisions you’ll have to make is whether to set up a living trust or a will.
There are pros and cons to both options, so it’s important to weigh them carefully before making a decision. This article will go over some of the key considerations for living trusts and wills in California.
What is a Living Trust?
A living trust is a legal document that allows you to control how your assets will be managed and distributed after your death. Unlike a will, a living trust does not go through the probate process, will and trust can be time-consuming and expensive. Get advice from a Barrattorney Company.
There are two types of living trusts: revocable and irrevocable. With a revocable trust, you can make changes to the trust at any time. An irrevocable trust cannot be changed once it has been created.
Pros of a Living Trust
- Avoid Probate
As mentioned above, one of the biggest advantages of a living trust is that it can help you avoid probate. Probate is the legal process through which a will is validated and assets are distributed. It can be time-consuming and expensive, so avoiding it can be a big plus.
Another advantage of a living trust is that it offers more flexibility than a will. With a will, you have to specify how your assets will be distributed upon your death. Once the will is executed, those instructions cannot be changed. With a living trust, however, you can make changes as needed. This can be helpful if your circumstances
What is a Will?
A will is a legal document that outlines how you would like your assets to be distributed after you die. You can also use a will to appoint a guardian for your minor children. Wills are typically created by an attorney and are signed by the person making the will (the “testator”) and two witnesses. Once you die, your will must be “probated,” which is a legal process where a court reviews your will to make sure it is valid and then carries out its instructions.
-Wills are relatively simple and inexpensive to create.
-They do not require ongoing maintenance like a trust does.
-Wills are easy to change – you can simply create a new will that revokes (cancels) the old one.
-Wills must go through probate, which can be time-consuming and expensive.
-If you have assets in multiple states, your will might have to go through probate in each state, which can be very costly.
-Your will becomes public record during probate, which some people may want to avoid.
The Pros and Cons of Living Trust vs. Will
There are a few key differences between living trusts and wills in California that you should be aware of before making your decision. Here are some pros and cons to help you decide which is right for you.
-Avoids probate, which can be costly and time-consuming
-Your beneficiaries can access the assets much sooner
-You can change or revoke the trust at any time
-Assets in the trust are not subject to estate taxes
-Wills must go through probate, which can be costly and time-consuming
-Your beneficiaries will not have access to the assets until after probate is complete
-You cannot change or revoke a will once it is in effect
-Assets in a will may be subject to estate taxes