Living Trust Vs Will… What Are the Major Differences?
Both wills and living trusts are ways to ensure your assets are passed to your family after your death.
When considering your family’s future, it’s important to weigh the benefits of having a living trust vs a will. And, while wills are what come to mind when people think about their legacy, there are a few key differences that distinguish the two.
One of the most important differences is that a will takes place after your death and must go through probate court. A living trust, on the other hand, goes into effect when you’re alive and does not require probate court. While this may seem like a minor technical difference, having a living trust in place can save your family a lot of time, money, and unnecessary heartache.
You don’t want your family tied up in probate court
After you pass, you want your assets to provide for your family immediately. If you’re the sole provider in your family, they likely cannot afford to endure the lengthy probate process that a will would require. In typical cases, wills are tied up in probate court for a minimum of six months.
And, of course, lawyers aren’t free, so all that time can cost your family a lot of money. If your will is contested or you have assets in multiple states, court could end up costing your family tens of thousands of dollars. Not only does this chip away at their inheritance, it can quickly multiply any debts they have if they don’t have a reliable source of income.
Finally, there’s the emotional toll that probate court can have. If your will is contested, probate can lead to drama, strife, and familial fractures. And, since the probate process isn’t private, your family’s net worth and grievances could all be aired publicly.
But, there are also other benefits of a living trust vs will
In addition to avoiding probate court, there are a number of reasons people should pursue a living trust vs a will. A living trust can reduce your family’s tax burden, ensuring that they inherit a higher percentage of your assets. In the case of irrevocable trusts, they can also safeguard your family from creditors.
Another major benefit of a living trust vs will is that trusts protect your assets while you’re still alive. While this may not seem important if the goal is to securely transfer assets after your passing, it’s a crucial difference because it protects your estate if you’re incapacitated.
Still debating between a living trust vs will?
At Wiser Financial Group, we pride ourselves on delivering top-quality financial services to our clients. If you’re weighing the pros and cons of a living trust vs a will, we encourage you to reach out to us to discuss your best option. Our experienced team has decades of experience in wealth management and will work closely with you to ensure we’re taking the steps necessary to protect your assets and, more importantly, your family.
Are you ready to get started?
If you’re eager to begin your financial journey, the team at Wiser Financial group is here to help.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Neither Kestra IS nor Kestra AS are affiliated with The Wiser Financial Group nor any other entity referenced herein. Neither Kestra IS nor its affiliates provide legal or tax advice and are not Certified Public Accounting firms.
Investor Disclosures https://www.kestrafinancial.com/disclosures
This site is published for residents of the United States only. Registered Representatives of Kestra Investment Services, LLC and Investment Advisor Representatives of Kestra Advisory Services, LLC, may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact our Compliance department at 737-443-2582.
The above links are provided for your information only. As they are provided by third parties, Kestra Investment Services, LLC does not endorse, nor accept any responsibility for the content. Kestra IS does not independently verify this information, nor do we guarantee its accuracy or completeness.
*It is not possible to invest directly in an index. Exposure to an asset class represented by an index may be available through investable instruments based on that index. Past performance of an index is not an indication or guarantee of future results. Intent of this chart is to demonstrate equity market volatility and why it may make sense to seek professional advice when it comes to investing.