Costs Comparison: Simple Will vs. Living Trust

Administration With A Simple Will

 Estate Size ($ worth) Estate Taxes Probate Fees Total Taxes/Fees
       
$100,000 0 $6,300 $6,300
$300,000 0 $14,.300 $14,300
$600,000 0 $26,300 $26,300
$1,200,000 $235,000 $46,300 $281,300
       

Administration Using A Living Trust

 Estate Size ($ worth)

Estate Taxes

Probate Fees

Total Taxes/Fees

       

$100,000

0

$0

$0

$300,000

0

$0

$0

$600,000

0

$0

$0

$1,200,000

$0

$0

$0

       


Advantages of a Living Trust

Avoids all probate costs

Can reduce or eliminate estate taxes

Can be changed or canceled at any time

Can be controlled by you and your spouse during your lifetimes

Prevents unintentional disinheriting

Prevents a conservatorship at physical or mental incapacity

Allows control by your trustee at incompetency or after death

Minimizes stress on your family at incompetency or after death

Preserves privacy

Very hard to contest

Allows immediate distribution of assets to beneficiaries


Don't think you have a large (enough) estate to worry about a living trust? Think again! The market value of even the smallest of homes can result in a probate estate costing more than $10,000 to administer and settle. When you consider that estate planning can cost less than ten percent of that amount and will eliminate all probate costs, it seems better to have that living trust drafted, doesn't it?


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