Living Trusts vs. Wills: Which Is Best for You?
When making plans for your estate, two of the most common vehicles worth considering are wills and living trusts. Both wills and living trusts are ways to distribute your property after your death, but they operate in different ways and have their pros and cons. Understanding the Basics A will also allow you to designate guardians for minor children and express any funeral or burial wishes. However, a will must go through probate, which is a time-consuming and expensive court-supervised process. In contrast, a living trust allows you to transfer your assets into a trust while you are alive. After your death, the assets pass directly to your beneficiaries. Since living trusts avoid probate, a trust typically leads to quicker distribution and more privacy. Living trusts are particularly valuable if you own real estate in other states, as they will prevent your estate from going through probate in every state where you own property. Cost, Control, and Complexity Wills typically re...