Simple Will vs. a Revocable Living Trust by Babette B. Bach, Esquire
Simple Will vs. a Revocable Living Trust :
Simple Will: A very effective tool to designate who gets what after death. Probate is required but this is not usually a difficult process. The average cost of probate is 3% of the probate assets and the average length of time to complete is six months. Many assets are not part of the probate estate such as jointly titled real estate, IRAs, annuities, life insurance policies and jointly held assets.
Revocable Living Trusts; These are more complex documents which provide for the trustee to manage assets while the settler is alive but incapacitated or deceased. It can hold assets in trust for a variety of reasons after the settlor’s death. Typical reasons may include, a spendthrift child, a disabled descendent, an income trust for the life of a surviving spouse, then residue to children upon death of surviving spouse, Charitable foundations, Pet trusts, generation trusts and tax planning etc. There is still administrative work to do to administer a trust. Typical costs run about 2% of the trust estate. It takes about the same amount of time to administer a trust as to probate a Will.
If you need legal advice for estate planning, Medicaid planning, or VA planning, please contact our office for an initial consultation.
Babette B. Bach, Esquire, Board Certified Elder Law
Fredric C. Jacobs, Esquire, Board Certified Tax Law
Bach & Jacobs, P.A.
240 S. Pineapple Avenue, Suite 700
Sarasota, FL 34236
941-906-1231
941-954-1185 facsimile
www.bachjacobs.com