Should You Draft A Will Or Trust?

There are many tools available that will help you properly plan for your estate. Among these, wills and trusts are some of the most popular but they are largely misunderstood. Many people think drafting a will only causes hardship for their loved ones, as any assets contained within one must go through the probate process. On the other hand, these same people sometimes believe that their estate is not large enough to require a trust. So, what is the right solution? It really depends on your personal situation.

Advantages Wills Have Over Trusts 

If you have a will-based estate plan, your executor will have to go through the probate process. This is true even if no one is contesting the document and even if the property within it is relatively small. The probate process is one that many people want to avoid, as it can be very costly and time-consuming. Still, even though the probate process is associated with a great deal of stress and headaches, there are times when a will may be a better option than a trust.

In some instances, the administrative fees associated with trusts can drain the funds within a trust before the beneficiaries ever receive their inheritance. With the exception of filing fees and attorney fees, wills do not have the same administrative costs as trusts. A pour-over will is often a good solution for people who want to create a trust but also want to draft a will. Pour-over wills transfer all of a person’s property and assets into a decedent’s trust after they pass away, so they are not subject to probate.

Advantages Trusts Have Over Wills 

When people hear the word ‘trust,’ they often think that they do not have enough money or property required to fund the trust. It is a common misconception that trusts require a large estate. This may be due to the fact that the word ‘trust’ is often associated with ‘trust fund babies’ or large philanthropic organizations that operate exclusively out of a trust.

Truthfully, trusts can require much less in administrative fees to set up and manage. Those funds are also taken right out of the trust, so it can fund itself. While the facts of every case are different, administrative fees for a trust can begin at $2,500. Compare this with probate fees, which can range from $3,000 to $8,000 and exceed $100,000 if litigation is involved, and drafting a trust can be much more affordable than creating a will.

Another benefit that comes with avoiding probate by using a trust is that the beneficiaries can receive their inheritance right away.

Our Trust Planning Lawyer in St. Petersburg Can Advise On Your Case 

Whether you need a trust or a will depends entirely on your own situation. At Legacy Protection Lawyers, LLP, our St. Petersburg trust planning lawyer can review the facts of your case and recommend the solution that is right for you. Call us now at 727-471-5868 or contact us online to schedule a consultation and to get the legal help you need.

Sources:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/0732.html