At Incapacity
Unable to handle your financial affairs
With no will
Court Control : Court appointee oversees your care, must keep detailed records, reports to court, and usually must post bond (even if appointee is your spouse). Court approves all expenses, oversees financial affairs.
With a will
Court Control : Court appointee oversees your care, must keep detailed records, reports to court, and usually must post bond (even if appointee is your spouse). Court approves all expenses, oversees financial affairs
With A Living Trust
No Court Control: Your successor trustee manages your financial affairs according to instructions in your trust for as long as necessary. (In some states, court intervention maybe required for health acre decisions
At Death
With no will
Probate : Court orders your debts paid and assets distributed according to state law.
With a will
Probate : Same as no will, but assets distributed per your will (if valid and any contest are unsuccessful.
With A Living Trust
No Probate: Debts paid and assets distributed by successor trustee according to instructions in your trust.
Court Costs, Legal & Executor Fees
With no will.
Death : Often estimated at 3-8% of estate’s value. *Incapacity:* Impossible to estimate.
With a will
Same as no will. Costs can increase if will is contested after your death.
With A Living Trust
Minimal or no court costs. Reduced legal fees (minimal for small estates; larger/complex estates require more.
Time
With no will
Death : Usually 9 months to 2 years of longer before heirs inherit.
Incapacity: Court involved until recovery or death.
With a will
Death : Usually 9 months to 2 years of longer before heirs inherit.
Incapacity: Court involved until recovery or death.
With A Living Trust
Death : Often just weeks. Larger/complex estates take longer for tax returns, asset division.
Incapacity: No delays.
Flexibilty & Control
With no will
None : Court processes, not your family, have control at incapacity and death. When you die, assets are distributed according to state law.
With a will
Limited : Same as no will except, when you die, assets are distributed according to your will (if valid and any contests are unsuccessful). You can change your will at any time.
With A Living Trust
Maximum : You can change/discontinue your trust at any time. Assets stay under control of your trust, even at incapacity and after your death. More difficult than a will to contest.
Privacy
With no will
None: Court proceedings are public record. Family can be exposed to disgruntled heirs, unscrupulous solicitors.
With a will
None: Court proceedings are public record. Family can be exposed to disgruntled heirs, unscrupulous solicitors.
With A Living Trust
Maximum : Living trusts are not public record. Your family can take care of your financial affairs privately.