What are the benefits of having a living trust versus a will?

As an attorney, I can offer legal advice regarding the benefits of having a living trust versus a will. The primary benefit of a living trust is that it allows assets to be transferred to beneficiaries without the need to go through probate. Probate is a legal process that occurs after a person passes away, during which a court determines the validity of their will and supervises the distribution of their assets. Going through probate can be costly, time-consuming, and may result in assets being distributed in a way that is not consistent with the deceased's wishes.

By contrast, a living trust allows assets to be transferred directly to beneficiaries without court involvement. The trustee, who is appointed by the person creating the trust (known as the grantor), manages the assets of the trust and distributes them to the beneficiaries according to the grantor's wishes.

Another benefit of a living trust is that it can provide for incapacity planning by appointing a successor trustee to manage the assets in the event the grantor becomes incapacitated. This can avoid the need for a court-appointed conservatorship, which is a legal proceeding to appoint someone to manage an incapacitated person's finances or personal affairs.

While a will also provides for the distribution of assets after death, it must still go through probate, which can be a disadvantage. However, a will can be used to appoint a guardian for minor children and name an executor to manage the probate process. Additionally, a will can be used to distribute personal property and make specific bequests that are not addressed in a living trust.

It's important to note that there may be limitations or exceptions to the benefits of a living trust versus a will, depending on the specific circumstances of the individual. For example, the cost of creating a living trust may be higher than a will, and the trust must be properly funded in order to avoid probate. Additionally, assets that are not transferred into the trust during the grantor's lifetime will still need to go through probate.

In conclusion, a living trust can provide significant benefits over a will in terms of avoiding probate and providing for incapacity planning. However, each individual's circumstances are unique, and it's important to consult with a qualified estate planning attorney to determine the best approach for your specific needs.