People often want to know what the difference is between a Will and Living Trust and which is appropriate for their particular situation. It is important that people understand both options when doing an estate plan and this article seeks to give readers a basic understanding of each option.

The most significant difference between a Will and a Living Trust is that a Will must pass through probate; whereas, a Living Trust does not. Probate is the process through which a deceased individual’s assets pass to the beneficiaries. Probate can be a costly and lengthy process. Through use of a Living Trust an individual’s assets can pass directly to the beneficiaries without the need for probate.

The greatest downside to a Living Trust is that the cost to have an attorney prepare a Living Trust will generally be substantially more than the cost of having a Will prepared. However, the time and expense saved by avoiding probate often outweigh the initial costs of having a Living Trust prepared. If all of an individual’s assets are properly transferred into the Living Trust, the cost of administration of the Trust after death should be substantially less than the costs would have been through the probate process. Additionally, the assets will be able to pass quicker than they will through the probate process that usually takes 6-12 months to complete.

Another factor that some people find to be a significant advantage with Living Trusts is that Trust remains private; while, a Will must be filed with the Register in Probate, and therefore, becomes public record.

Both Wills and Trusts provide the opportunity to include tax planning provisions; nevertheless, Trusts are normally the device used when tax planning. Both documents allow you to designate the individual that will administer your estate, whether that is the trustee of your Living Trust or the personal representative of your estate in a probate.

The choice between a Will or Living Trust depends on each individuals specific situation, preferences and priorities. Neuberger, Wakeman, Lorenz, Griggs & Sweet has several attorneys who will be happy to meet with you to further explain the differences between the options and help you decide which is best for you.