Is A Trust Right For You?

Unlike wills, trusts eliminate probate, a court proceeding that can be costly and time consuming.  Because many people want to steer clear of probate, they try to avoid wills altogether.  Below are some key questions to consider in determining whether a trust is right for you.

• How much of your estate will go through probate? While trust assets do not go through probate, there are other ways to title assets to avoid probate.  Assets owned jointly with a right of survivorship and assets with designated beneficiaries do not go through the probate process.
• How expensive is probate? A lawyer can charge three percent or more of the value of the assets going through probate as legal fees.  Additionally, the law allows executors to be paid around three percent of the estate.  Contrastingly, legal fees for trusts are about one percent.    
• Do you own out of state property? If you own property in multiple states, avoid the probate problem by transferring out-of-state property into a trust. 
• Will anyone contest your wishes? If you divide your estate unequally or disinherit anyone, a trust reduces the chance of a family fight in court.  If you use a will, certain family members must receive notice of the probate, and if they are left out, it is easier to challenge your wishes.

See Bonnie Kraham, Bonnie Kraham: When is a Trust a Better Option? Times Herald Record, Oct. 2, 2014.