One of the chief advantages of a living trust is that it does not have to go through the probate process. No judge has to look at it, or approve the person chosen to carry out its instructions or authorize that person to start doing what it says to do. As soon as the person who created the trust dies, the person designated to take over and do what the trust says can do that.
A living trust does not protect assets from creditors’ claims. A living trust does not provide any greater security or protection from contests or claims of invalidity than a will. A living trust does not provide any better protection than a will against arguments among the survivors.
The reason why a living trust works is because the person who creates the trust ceases to own the property governed by the trust. Instead, the trust itself becomes the owner. Since a trust can’t die, there’s no need to transfer property or go through estate administration proceedings. The next person named to deal with the trust property just takes over.
Of course, this means that everything owned by the creator of the trust must be re-titled. Automobile titles have to be changed from “Mr. & Mrs. Jones” for example, to “The Jones Trust”. Mr. & Mrs. Jones have to give the trust a deed or deeds to their real estate. Bank records have to be changed. Accounts with securities houses have to be changed.
In the past it has taken us between 5 and 25 hours to assist clients in drafting the documents necessary to put a living trust into effect. Of course, the actual time in any particular case could be more or less.
THE MAJOR DIFFERENCE
Wills are available for free to the PPL member, and $20.00 plus tax to the member’s spouse. Trusts are available at the discounted hourly rate for whatever time it takes to do the work, with a signed fee agreement and an appropriate deposit in advance.