Will-Based Versus Trust-Based Estate Plans

If you have put off your estate plan because you don’t know whether you need a trust or a will, that’s okay! Each situation is unique and just because your neighbor has a trust doesn’t necessarily mean you need one. When we first meet with a client, we will go over everything and help you decide whether you want to move forward with a will-based estate plan or a trust-based estate plan.

One of the main differences between a will-based estate plan and a trust-based estate plan is a will-based plan does not include a living trust to hold title to your assets. If you opt for a will-based plan, your loved ones and beneficiaries will likely have to go to court to access their inheritance upon your death.

Will-Based Estate Plans

As noted above, a will-based estate plan does not avoid probate. However, it does outline who you wish to pass down your assets to after your passing. In order for your heirs to access those assets, though, they will likely have to go through the probate process. The probate process can be expensive and time-consuming, depending on what kind of assets you are leaving behind.

Trust-Based Estate Plans

As mentioned above, probate can be lengthy and costly. In Florida, most probate cases must have an attorney on the case, which adds to the expense of probate. By having a living trust that you have properly funded, you can save money on those attorney fees. This can put money back in the pockets of your beneficiaries.

A trust-based plan can help your family and other beneficiaries avoid the probate process entirely. Generally, you will act as the Trustee of the trust during your lifetime, which gives you the ability to maintain control over your assets. Then, upon your incapacity or death, your successor trustee takes over and administers the trust according to your instructions. It is a private and efficient process.

While a living trust is more expensive than a will up front, they can cost less overall. This is one of the discussions we have when deciding whether a living trust is right for you.

Will-Based and Trust-Based Estate Plans

At Wildoner Law, PLLC, both our will-based and trust-based estate plans include a durable power of attorney, a health care surrogate, and a living will. These additional documents help protect you and your assets in the event of a severe illness or incapacity.

Questions?

The above list is not exhaustive, but it highlights the main differences between a will-based estate plan and a trust-based estate plan. If you are in Florida and are interested in discussing whether a will-based estate plan or trust-based estate plan l is right for you, contact us today. If you’re ready to get started on your Florida estate plan, you can do so here.