As almost everyone knows, a Will is a written document, which puts forth your wishes regarding your estate after your passing. It has to be signed by you, as well as two disinterested witnesses. You get to appoint a person you trust as an executor of your will. You have to be careful when you appoint this person because he/she is going to be disposing of your assets after your passing according to the will. Below are pros and cons that can help you determine if need a trust or a will.
Pros and Cons about Wills:
Pros: Drafting of a will is cost effective. It costs generally $350-$400 to get a will drafted. A will allows you to dispose your property according to your liking.
Cons: Upon your passing, the executor of your will has to hire a probate lawyer Arlington TX trusts to probate your will. It takes about $2,500-$3,000 to probate your will (without a will contest). You have to retain the original copy of the will so it could be filed with the Court.
A trust document disposes of your property also according to your wishes by putting your property in a trust. A trust bypasses the court’s involvement. This means, your trustee does not have to hire an attorney after your passing to dispose of your property. There are two different types of trusts: Revocable Trust and Irrevocable Trust. A common misconception most people have about trust is that it is used only for huge estates. This is untrue.
Pros and Cons about Trusts:
Pros: A trust is helpful if you have a minor child because you can establish special provisions for your child’s need or education. You can create a trust if you are worried you may become incapacitated and need someone to manage your assets. Unlike a will, a trust keeps your assets outside of the public disclosure.
Cons: A trust can protect only the assets that are placed in the trust itself using a certificate of trust. A trust requires you to manage your assets. A creation of trust costs approximately $3,500.
At the end of the day, a trust or a will will generally end up costing you the same amount. It is your decision whether you want to spend the money up front or wait. Everyone’s estate is different. One size does not fit all. To get a customized estate planning for your individual matter, please contact a experienced attorney.
Thanks to our friends and contributors from Brandy Austin Law Firm PLLC for their insight into probate law.