Protecting Your Loved Ones: The Last Will and Testament vs. Living Trust

Hi there! Have you ever wondered what would happen to your belongings and assets once you're no longer around? It's not the most cheerful topic, but planning for the future is essential to ensure that your loved ones are taken care of. Today, we're going to explore two popular estate planning tools - the Last Will and Testament and the Living Trust. So, grab a cup of your favorite beverage, and let's dive in!

The Last Will and Testament - A Tried and True Approach

Think of your Last Will and Testament as the ultimate "to-do list" for your assets. It's a legal document outlining how you want your belongings distributed after passing. One of the significant advantages of a will is its simplicity and familiarity. We've all heard about it in movies or books - "I, [Your Name], hereby leave my prized collection of vintage comic books to my niece, Emma."

Pros:

1. Ease of Creation: Writing a will is relatively straightforward and doesn't require expensive legal fees. You can do it yourself, but it's wise to consult a qualified attorney to avoid any mistakes or ambiguities.
2. Custody of Minor Children: A will allows you to appoint a guardian for your minor children, giving you peace of mind knowing they'll be in good hands.
3. Flexibility: You can modify your will anytime during your lifetime to accommodate changing circumstances or new assets.

Cons:

1. Probate Process: Upon your passing, the will goes through a legal process called probate. It can be time-consuming delaying the distribution of assets to your beneficiaries, leaving them waiting when they may need the support the most.
2. Probate cost: The cost of probate varies from state to state. In general, it will cost about 2-7% of the total value of your assets.
3. Public Record: Wills are generally filed with the court and become public record, which means anyone can access the details of your estate after your passing. This includes the contact information of all your beneficiaries, including your minor children.
4. Minors Inherit at the age of 18: How do you feel about your minor child inheriting all their inheritance at the age of 18? Would they be able to handle or manage it properly? What about predators or creditors? At this young age, they may not have the financial maturity to handle a significant inheritance responsibly.
5. Can create Family Feud: A Will can sometimes create family feuds due to its public nature and potential ambiguity, which may lead to disputes over the distribution of assets, interpretation of the deceased's intentions, and the involvement of probate court, often straining family relationships during an already challenging time.

Enter the Living Trust - Your Private and Efficient Ally

Think of your Trust as a backpack that includes and protects everything that a Will does not! You choose its color and style and the items within it. You remain in control of all the items in your backpack until death and even afterward, depending on how you choose your Trust designed.

Pros:

1. Avoiding Probate: Unlike a will, assets held in a living trust bypass probate, saving time and expenses for your loved ones. This means they can receive their inheritance promptly, helping them when they need it most.
2. Privacy: The living trust is a private document, meaning its contents remain confidential. Your estate details won't be available for public scrutiny.
3. Incapacity Planning: A living trust can include provisions for managing your assets if you become incapacitated, providing a smooth transition without court intervention.
4. Minors Inheriting at Age 18: If assets are transferred to a living trust for the benefit of minor children, they will still have access to these assets once they reach the specified age (usually 18) without wasting them or becoming a target of creditors or predators. A trust allows you to have more control over how and when they receive their inheritance, keeping them safe from creditors and predators.
5. A trust is not for the wealthy only: While trusts have been historically associated with wealthier individuals, they are not exclusive to the wealthy. Trusts can be valuable estate planning tools for people of varying financial backgrounds and family situations. Unless your assets meet a Simple Probate Process; otherwise, a trust creates more protection for your assets.
6. Avoiding Family Feud: Unlike a Will, a trust can be a proactive way to avoid family feuds, as it provides clear and legally binding instructions. It also creates privacy, minimizing potential conflicts and ensuring the smooth transfer of assets to beneficiaries.

Cons:

1. Upfront Cost: Establishing a living trust may involve more upfront expenses than creating a will. However, the long-term benefits often outweigh the initial investment. At Estate Armor, we evaluate each client's needs and wishes before we recommend creating a trust and we will not suggest a trust if the money you save is not greater than the money you spend. Book a Peace of Mind Planning Session to evaluate your options. Don't forget to mention this blog to waive the $450 session fee. 
2. It is complicated: As a busy parent or entrepreneur, life is already filled with numerous responsibilities and commitments. The thought of adding estate planning, particularly setting up a trust, to the mix can seem overwhelming and complicated. But fear not! At Estate Armor, we understand the challenges you face, which is why our 5-step process is specifically designed to make the estate planning journey easy, uncomplicated, and straightforward - because your peace of mind matters! As busy parents and entrepreneurs ourselves, we know firsthand the importance of safeguarding your loved ones' future without adding unnecessary complications to your already packed schedule. Book a Peace of Mind Planning Session to learn about our easy and convenient process.
   
   

The Best of Both Worlds: The Trust

As you can see, both the Last Will and Testament and the Living Trust have their merits. In fact, many individuals opt for both to enjoy the advantages of each approach. But remember, every person's situation is unique, and there's no one-size-fits-all solution.

Ready to Secure Your Legacy? Book a Peace of Mind Planning Session with Estate Armor to see which option meets your needs and concerns the best!

If you're unsure which option is best for you, don't worry; you don't have to navigate this complex decision alone. Our experienced team at Estate Armor is here to help you understand your options and craft a customized estate plan that fits your needs.

Take the first step towards securing your loved ones' future! Book your PMPS with Estate Armor today. Let's work together to ensure that your assets are protected, your wishes are honored, and your legacy lives on. Don't wait - because when it comes to your family's well-being, there's no time like the present.

Remember, estate planning isn't just about the documents; it's about taking care of the ones you love. Let's embark on this journey together. Contact us at 1 (888) 882-6742 and let Estate Armor be your trusted partner in safeguarding your legacy.

* Don't forget to mention this blog and get a $450 off of your PMPS Session.