|
With No Will |
With A Will |
With A Living Trust |
At
Incapacity (unable to handle your
financial affairs)
|
Court Control: Court appointee
over-
sees your care, must keep detailed records, reports to courts,
and usually
must post bond (even if appointee is your spouse). Court approves
all expenses, oversees financial affairs. |
Court Control: Same as no will. |
No Court Control:
Your successor trustee manages
your financial affairs according
to instructions in your trust
for as long as necessary.
(In some states, court
intervention may be required
for health care decisions. |
| At
Death |
Probate: Court orders your debts
paid
and assets distributed according to state law. |
Probate: Same as no will, but
assets
distributed per your will (if valid and any contests
are unsuccessful). |
No Probate: Debts paid and
assets distributed by successor
trustee according to instructions
in your trust. |
Court
Costs,
Legal &
Executor Fees |
At Death: Often estimated at
3-8% of
estates value. At incapacity: Impos-
sible to determine. |
Same as no will. Costs can increase
if will is contested. |
At Death: Usually none if
no estate taxes. At incapacity:
None. (Attorney can be helpful
for larger estates.) |
| Time |
At Death: Usually 9 months
to 2 years before
heirs can inherit. At
incapacity: Court
involved until recovery
or death. |
Same as no will. |
At Death: Usually just
weeks (larger estates
may take longer
for estate tax filing).
At incapacity:
No delays. |
Flexibility
&
Control |
None: Court processes,
not your family,
have control at
incapacity and death.
When you die, assets
are distributed according
to state law. |
Limited: Same as no
will except, when you
die, assets are distributed according to
your will (if valid and
any contests are
unsuccessful). You can change
your will at any
time. |
Maximum: You can
change/discontinue your
trust at any time.
Assets stay under control
of your trust, even
at incapacity and after
your death. More
difficult than a will to contest. |
| Privacy |
None: Court proceedings are public
record. Family
can be exposed to disgruntled
heirs, unscrupulous solicitors. |
None: Same as no will. |
Maximum:: Living trusts are not
public record.
Your family can take care
of your financial affairs privately. |
