Will or Trust? Which One Could Save Your Family $50,000 or More?
Every week we’re asked the exact same question; “Why do I need to spend money for a Living Trust, when we can simply create a Will?” It’s a great question, but the answer may shock you – “A Will by definition, is simply instructions to the Probate Court Judge!” If we’re trying to avoid all of the problems associated with our family going through the Probate Courts, then a traditional “Will”, alone, is utterly insufficient! As a matter of fact, it puts our family directly into Probate Court!
Probate is an ugly court proceeding. Children and other family members often battle it out in court, where a judge will ultimately decide who gets what, whether you like it or not! Probate also takes a serious amount of time. It can take your family three to five years to get through. It’s a Public Forum, literally inviting false creditors, and whoever might want to make a claim against your assets, to do so, prior to your children or other loved ones receiving their inheritance. Say you had plumbing work done on your home prior to your passing away. That contractor can present a “false invoice” in your probate, claiming the $6,000 you paid was only a portion of the final invoice. So, how does the probate court judge know if the invoice is valid or false? They don’t know! The judge must assign a “special investigator” to review every claim made, which can add 12 to 24 months to probate, as well as a significant additional cost for the investigation of each and every claim! Probate Court can also be very expensive, with the average cost in California ranging between $40,000 and $70,000, or 8 to 10 percent of your “gross” assets, not your net worth, taken from your estate, prior to your loved ones receiving their inheritance!
Many parents have told us that one of their biggest fears is who will raise their children, if they pass away early. Interestingly, one area a Living Trust does not protect your family is with naming a “Guardian for Minor Children”. That is done only in a Will, not a Trust.
Founder, President at Living Trust Educators
President at Living Trust Educators
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CU PLAN, with “Living Trust Educators”, is a Legal Document Assistance Corporation, working in partnership with expert “Trust Attorneys” with 100’s of years of combined experience. We’re Bonded, Registered, and Certified to prepare Legal Documents throughout the State. LDA #287-O.C. CU PLAN also teaches extremely important inheritance planning strategies to pass wealth to your family, while reducing the tax exposure they face when you’re gone!