Are you trying to decide between a living trust and a will? Not sure what the difference is between the two? Here are 3 benefits of having a living trust and why you might chose a trust over a will.

What is the difference between a Living Trust and a Will?

A living trust is a legal document that allows the beneficiaries to have access to the assets inside the trust quickly upon the your death and without having to go through court. When a living trust is in place you avoid probate court, decide what happens to your property when you die, direct what should happen if you become incapacitated, and assure that your assets and affairs will not be a part of the public record.

A will is a document that states how you want your property to be distributed when you pass away.

3 Benefits of a Living Trust

A living trust avoids probate.

One of the main benefits of having a living trust is that it avoids probate. Probate is the court proceeding necessary before the assets are distributed to the beneficiaries. A living trust does not require probate so beneficiaries to receive the assets more quickly.

It can save money in the long run.

Since a living trust is more sophisticated than a will, the up-front cost may be higher. Although a will does often cost less to create, a living trust can save money in the long run. If you rely on a will, your assets must go through probate. The costs for probating the will reduce your estate.

It provides privacy.

Unlike an estate probated under a will, the contents of a living trust are not made public. The contents of the living trust will not become public record and so only people you choose will know the contents of your estate and how it was distributed.

Think a living trust is what you and your family need? At Smith Baird we have a team of skilled attorneys that are ready to start the process of estate planning for your family today. Call us at 912.352.3999