Last Will & Testament Vs. A Living Trust

[Ro_Laren]

I'm not dying or anything, but as a proactive person I want to make my will. The questions is, should I make a "Last Will & Testament" or a "Living Trust"? I'm young and don't have any kids (or pets). I also don't have many assets or zillions of dollars in the bank. So which should I make- a will or a trust? Legalzoom.com allows you do a will for $70 and a trust for $249 - $260.

 

[Robert Maxwell]

A will is a better idea in your case. Living trusts are best for people who are advanced in age and have large estates that they don't want tied up in probate court when they die. With a living trust you'd be spending extra money and hassle for nothing.

 

[Kestra]

You might also want to check out this brochure, which helps you with future medical decisions.

 

[Ro_Laren]

Another factor that I think about when trying to make this decision in court costs. I know that there is nothing that can stop families from fighting over my assets, but will other court costs be extremely higher if I have a will vs. a trust?

 

[Robert Maxwell]

Another factor that I think about when trying to make this decision in court costs. I know that there is nothing that can stop families from fighting over my assets, but will other court costs be extremely higher if I have a will vs. a trust?

Honestly, a living trust is probably only worth the extra expense if you have a very valuable estate (>$1 million) or you have a whole bunch of stuff you want to go to different people. Probate court can be expensive and drag on for months, but this is unlikely if you have a relatively small estate and few inheritors.

 

[Tora Ziyal]

Same advice as everyone else: a trust probably isn't worth the expense for you. But to be sure, you might want to ask someone (attorney or financial planner) who specializes in estate planning.

If you didn't look at http://www.nolo.com/ while you were doing your on-line research, you might want to check it out. I've used it twice, years apart, and found it to be both thorough and easy to use.

BTW, while you're doing your will, you should also do a Power of Attorney so someone can handle your finances if you are incapacitated in some way.

 

[Maestro]

Just remember, though, a POA dies when you do.

 

[Captain Ice]

Another thing to consider is that there may be a PITA factor whenever you decide to sell something that is part of the trust. Check your local laws.

 

[auntiehill]

You're far better off with just a simple will. A trust is only advisable if you have multiple heirs and a large estate (cash, stocks, real estate, etc) that you want to divvy up between them.

If you have no children and not a very large/valuable estate, then a simple will is what you need. It will also save you time and money, not to mention a lot of hassle, in the long run.

 

[Mutai Sho-Rin]

One more vote for the simple will with medical directives. The medical part may well be the most important if you want a DNR (Do Not Resuscitate), organ donation or similar language incorporated in it. This also supports the designation of a POA.

 

[Tora Ziyal]

Just remember, though, a POA dies when you do.

Good reminder.

One more vote for the simple will with medical directives. The medical part may well be the most important if you want a DNR (Do Not Resuscitate), organ donation or similar language incorporated in it. This also supports the designation of a POA.

Just to be clear, that's a medical POA, called a health care agent or health care proxy in some states. That's a totally different document than the financial POA I was referring to upthread, though it could be the same person.

 

[Aurian]

Just gonna hop in here and say that i think it is always fantastic when people have thought out in advance their will and last testaments and given due notice how they prefer to be buried and so on.
Part of my job is to take care of peoples burials if they have left no kin and it is always a relief when they have left wills and "directions". With these things you just dont want to .. guess.

 

[propita]

No kids, no real property? You likely only need a will, PoA, medical directives, etc.

Kids and/or real property? You likely need a trust. Don't forget to name a Guardian of the Body (physical control of the kids) and Guardian of the Estate (controlling the money for the kids). Unless you get an additional provision regarding that (spendthrift or other provision). But you'd also want a "pour-over will" so that anything not named in your trust goes with the trust.

Hubby and I have a house but no kids. Still no trust, but I wrote out what would constitute a legal will in CA in pen on a piece of notebook paper and signed/dated it. Basically that I intend that all real and personal property and all rights to any go to Hubby. Only problem is it would still need probate and does not cover if anything happens to BOTH of us (as in, single accident kills us both); then I'm intestate and my half would go to my Mom and his half would go to his parents. They're the legal heirs in our cases.

 

[Peacemaker]

Something else to consider...when making this decision, it's also important to consider, not only the size of one's estate, but also the needs of one's inheritors. For example, I'm a person living with HIV. Because I have special needs, my parents have opted not for a will qua will, rather they have opted to set up a special needs trust that will allow me to have access to my inheritance and avoid obstacles that may in the future otherwise impede my access to disability benefits and other measures.

 

[PurpleLady]

It's amazing how much useful information comes out in what would appear to be a simple post. Everybody adds in a little bit of personal experience and the pitfalls they've encountered and the thread becomes something you want to save somewhere to pass on to others.

The only bit I can add is to emphasis for all, the medical and regular power of attorney. When your parents get older and start to lose their faculties, it's too late to obtain these documents. I know it's hard to talk about death and dying, but if a loved one needs medical decisions made or needs to have their bills paid, you have to have the tools to be able to do that.

 

[Ro_Laren]

Well, I would leave my belongs to four total people (my parents and two siblings). Hopefully they won't fight over my meager belongings, lol. It looks like it is best to go with a will.

 

[Non Sync]

IANAL; but, a will & testament is separate from a living trust. Having a living trust puts ownership of your bank accounts and physical assets into the trust. It is control of the trust that gets transferred. Because things belong to the trust, those items do not have to go through probate. Wills cover other things such things as items not included in the living trust.

Depending on your circumstance, you might want to have both.