The Difference Between a Will And a Trust

ELK GROVE, Calif. - Aug. 5, 2013 - PRLog -- Many people are confused about what the difference between a will and a trust is.  Is one better than the other? 

Local Estate Planning attorney, Erik Hartstrom notes, “Trusts are more expensive than a will so many people want to know what the difference is, and if they really ‘need’ a trust.  After all, who wants to spend money if they don’t have to?”

In California, the dividing line for the usefulness of a trust is defined by what can pass to your heirs directly without having to go through probate.  That amount is currently $150,000 in combined real estate and liquid assets. 

Estate Planning attorney Erik Hartstrom goes on to explain the difference between a will and a trust:

One of the key functions of a trust is to avoid the time and expense of probate.  A small sized estate of $200,000 – just $50,000 over the breakpoint – will cost over $14,000 in statutory attorney fees and executor fees.  A probate case will take a minimum of four to five months to finalize the distribution. 

Wills

A will “speaks at death” to use a lawyerly colloquialism.  It doesn’t do anything until the court receives it and orders its instructions carried out.  A will is required to go through probate, which is a expensive and time consuming.  A probate case is public record, meaning that anyone can see exactly what you had, and what your heirs are receiving. 

Trusts

A living trust takes effect while you are alive, and holds your property for your benefit.  If something happens and you are unable to manage your property the person you chose as the “successor trustee” can step in to manage them for your benefit.  The successor trustee steps in immediately after death and he or she won’t have to wait for any court orders.  A trust administration is private; typically the only public record will be the change in property titles. 

So, which is better for you?  The correct answer is: it depends – on your individual goals and on the size of your estate.  

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 Erik Hartstrom is an authority on estate planning, creating wills, trusts, and other documents to help his clients create a lasting legacy.  His practical style and focus on client education have resulted in national attention.  He is often featured in Life Health Pro, a publication which attracts top financial experts across the country.  Erik’s expertise has been featured in the media across California and nationally, including the San Francisco Chronicle, and Good Day Sacramento. 

Erik is passionate about his mission: “I help families prepare for the future.  Parents can keep their children out of probate court.”  Contact information for Erik is available at his website, http://www.estateplanpros.com