I previously believed that a will was the optimum method for distributing inheritance. However, I now advocate for the superiority of a living trust.
This article is for informational purposes only and does not constitute legal advice. For personalized advice, you should consult a legal professional.
Planning your estate isn't exactly a delightful task. So when my spouse and I drafted our wills many years ago, we thought we had taken care of arranging for an inheritance and could call it a day.
However, since then, I've immersed myself in reading about living trusts. Now, I firmly believe that a living trust is a superior option for passing down an inheritance. Understand why and you might come to the same conclusion.
The issue with making a will
Preparing a will isn't overly challenging, especially when done with the help of a competent lawyer. But there's a considerable drawback to utilizing a will to pass on inheritance.
For heirs to claim their assets from an estate, a will must first undergo probate, which is a process that verifies its validity in a court of law. Probate can be a costly ordeal that erodes your estate's resources. It can also take months or even longer in complex situations.
But that's not my primary gripe about probate and writing a will. Unbeknownst to me at the time of drafting my will, a part of the probate process requires that a will becomes a matter of public record. This means that any individual can unearth information about your family's finances and learn the extent of your heirs' inheritance.
That's a practice that rubs me the wrong way. By nature, I'm a private person. But when it comes to my family's financial affairs, there's no doubt in my mind that I don't want these details disclosed.
Money is a personal matter. Just as I wouldn't openly discuss my bank balance or salary with most individuals I know, I don't see why random individuals should have the ability to learn about my family's financial situation by sifting through public records.
A living trust addresses the issue
Given that wills could potentially lead to a serious breach of personal privacy, I've begun to lean towards a living trust over a will for my estate planning. Unlike a will, a living trust doesn't need to undergo probate. As a result, its contents can remain confidential. If that's as vital to you as it is to me, then I suggest you consult an estate planning attorney and weigh your options.
However, I should warn you that creating a living trust may involve additional expenses compared to drafting a will. But if your family's privacy is important to you, those added costs may be well worth it. And regardless, it pays to consult with a lawyer and learn about those expenses since they may be more affordable than you'd think.
Don't forget that the expenses you incur may be contingent on the complexity of your estate. But the same applies to a will, so be sure to conduct a fair comparison if you're evaluating both options.
After acknowledging the drawbacks of using a will for inheritance, such as the costly and lengthy probate process and the public disclosure of financial details, the author expressed a preference for a living trust, stating, "Given that wills could potentially lead to a serious breach of personal privacy, I've begun to lean towards a living trust over a will for my estate planning." Furthermore, in light of the potential additional expenses associated with a living trust compared to a will, the author emphasizes, "But if your family's privacy is important to you, those added costs may be well worth it."
