TRY TO AVOID PROBATE
A will or trust is crucial for protecting your assets and reducing the time and expense for your heirs to honor your last wishes. However, if you have a Will you will be required to go through the Probate process. If you have a Trust, you will not be required to go through the Probate process.
Each client should review the pros and cons of each, however Probate is a time consuming and expensive process and your loved ones must hire a lawyer to handle the probate upon your death.
1. Last Will and Testament
Offers court-supervised protection; a Judge must approve the process.
Requires a probate process, which mandates the use of an attorney.
Attorneys fees and court costs are incurred during probate
Creditors have 90 days to file claims against the estate.
Formal administration often takes 6 months to a year to complete.
2. Revocable or Irrevocable Trusts
An alternative to avoid probate entirely.
No court action or Judge approval required.
Properly drafted trusts eliminate the need for attorney involvement upon passing (if counseled correctly).
Provides faster asset distribution and minimizes costs.
Certain trusts will provide asset protection
Trusts provide for privacy as the trust does not need to be filed with the Court
Can provide for asset protection and planning with 2nd marriages
Can provide for protection for young adults and your children
A Trust can ensure that minors or young adults have limited access to funds if they inherit an estate earlier than expected. The Trust can specify that the beneficiary receives funds for health, maintenance and support purposes until they reach a certain age, at which point they receive the remaining estate outright without restrictions or the assets can remain in Trust for creditor, divorce and other protections.
A Trust can help protect assets in cases of marriage, remarriage, and blended families. After your death, you might want to ensure that your spouse is not taken advantage of financially by a con artist, salesman or even a partner. A Trust can prevent these issues by protecting your assets and ensuring they go to your intended beneficiaries even if there is a remarriage.