Will or Living Trust
Our assets include 401(k), 2 rental single family houses and a primary house. Current bank account.
2 children one married one divorced.
What are the benefits of Living Trust versus Will. We know that the cost of preparation and maintaining Living Trust is substantial and an article we read in AARP indicated that a Will is in our situation plenty sufficient. Thank you for your answer.
Terry Says
Please read this article.
You are misinformed. First of all, a RLT should cost very little more than a traditional will to create. There is no “maintenance” — and it’s easier to change an RLT than a will.
A will takes care of everything AFTER death, and after your assets (outside of retirement accounts) go through probate. That takes a while and is expensive.
With a revocable living trust, your named successor takes over if you are incapacitated (think stroke or dementia) and doesn’t have to go to court for permission to act, based on your written instructions.
Your home, bank account and rental properties need to be transferred into the RLT for this to work. There is no tax consequence, no change in tax basis, and you can still buy and sell properties — and collect rents, since the trust uses your SS number. No extra tax return.
Use a competent estate planning attorney who s
Is not looking for probate fees down the road!
