There are two main ways to set up an estate plan: a simple will and a living trust. Depending on a person’s needs and size of the estate, it makes a difference which tool is used. As an estate lawyer serving the Raleigh and Durham areas, I’ve put both types of plans into action with great results.

Here’s a breakdown of these two estate planning tools:

  1. Simple will: A simple will is just that – a simple document that lets people know what should happen to a person’s estate after that person passes. For most people, this is all they need.
  2. Pros and cons of a will: With a will, the estate still goes through the probate process which might take time if the will isn’t clearly made. However, it allows for appointing guardianship of children. A will is less expensive to create. However, it’s easier to have a will contested and you have to go through the time, expense, and headache of the probate process.
  3. Living trust: In a living trust, a person shifts ownership of all his property into a trust with specific terms. That person no longer owns the home, the boat, grandma’s jewelry – it is all owned and managed by the trust. Trusts are more frequently used in especially large or complex estate plans.
  4. Pros and cons of a living trust: A trust allows the estate to bypass the potentially-lengthy probate process. Because of this, and also how they are constructed, they are more difficult to contest. Since assets in a trust aren’t owned directly by the originator, trusts can be a little more difficult to manage. For example, if the originator needs to sell their home, it needs to be moved out of the trust before it can be sold. Also, trusts do not allow for appointing guardianship of minors.

Will or trust? Which estate planning tool will work best for you? Contact Thornton Law Firm so we can start the conversation.