Wills Living Trusts Avoids probate? No. The court orders pay- Yes. Based on written ment of debts and distribution instructions, trustee pays according to instructions in will. debts and distributes assets to beneficiaries immediately.
Legal costs? Yes. The estate pays all court No. There are no court or and legal fees, which can total legal fees. (However, there up to 3-8% of estate. may be legal fees for setting up the trust.) Timely? No. Processing can take up to Yes. Immediate payment to two years. beneficiaries.
Contestable? Yes. Yes, but difficult to do successfully.
Flexible? Somewhat. Wills may be Depends. Revocable trusts changed at any time. can be changed or discontinued at any time; Irrevocable trusts usually cannot.
Privacy? No. Probate is a matter of Yes. Trusts are not part of public record. public record.
The table above illustrates some of the differences between a will and a living trust.
Originally published in the Santa Monica Daily Press print edition on December 2, 2004. Read the original PDF.