A will and a revocable living trust both say who inherits. They differ in how the property gets there.
What a will does
A will names your executor, says who receives your property and nominates a guardian for minor children. It takes effect only at your death, and the assets that pass under it go through probate. A will does not avoid probate. It is the set of instructions the probate court follows.
What a living trust does
A revocable living trust holds your assets during your life. You are usually your own trustee and keep full control. When you become incapacitated or die, the successor trustee you named takes over, and the assets in the trust pass to your beneficiaries without a probate case.
When a trust is usually worth it
- You own real estate in more than one state.
- Your children are too young to inherit outright, or you want an inheritance paid out in stages.
- You have a blended family and want to provide for a spouse and for children from an earlier marriage.
- A beneficiary has a disability and receives public benefits.
- You want to keep your affairs out of the public probate record.
When a will is often enough
Many people can pass most of what they own outside probate without a trust: beneficiary designations on retirement accounts and life insurance, payable on death and transfer on death designations on bank and investment accounts, survivorship ownership, and a Transfer on Death Designation Affidavit for the house. A will then covers whatever is left.
The step people skip
A trust controls only what has been titled in its name. Deeds, accounts and beneficiary designations have to be changed after the trust is signed. Anything left out may still have to go through probate.
We will tell you plainly which side of the line you are on. Call our Middletown or Monroe office to talk it through.