One of the big marketing points for trusts is to avoid probate through a revocable living trust. While this may be true for an individual that is advancing in years or has limited assets or very little movement of assets, it can serve little purpose for younger (under the age of 50) individuals or families. At that stage of a person?s life, their financial situations fluctuate greatly. They buy and sell assets such as cars, houses and boats routinely, many times forgetting that they are owned by a trust and need to be titled in the trust?s name. Once these items are out of the trust, or all assets not placed in trust, the assets are subject to some sort of probate upon your death.
Typically, for those at a younger age, the concern is about making sure to provide for young to college age children. The concerns are making sure to have the right guardians, financial advisors, and some testamentary trusts in the will in place in the event of death to contain the limited assets and life insurance they may have for their children. A will is a fairly inexpensive method to manage an estate in an individual?s younger years.
When discussing estate planning with younger clients many choose the flexibility and lack of administration issues of a will. Probate cost is typically a small price to pay in relation to the increases costs of an irrevocable trust and the administrative monitoring.
While trusts can be very valuable in many different situations such as special needs trusts, irrevocable trusts, charitable remainder trusts and for the needs of a senior citizen, many times a will is much less expensive and easier to administer for the younger generations.
Next time, I will discuss some of the Trusts in greater detail along with specific advantages of each.
Source: http://nellandassociates.com/estate-planning-wills-or-trusts/
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