Living Trusts Versus Last Will and Testaments

Living Trust versus Last Will and Testament

What is Estate Planning?

The concept of Estate Planning is to provide for the convenient and cost-effective administration of your estate if you become disabled and unable to manage your financial affairs and transfer of assets to your loved ones upon your passing. An important aspect of Estate Planning is to make this process and transition as cost effective and least time consuming as possible. Too many people do not understand that Estate Planning is all about your future as these documents need to be used later to save both time and money. The upfront expenses to create proper Estate Planning are not nearly as costly as those associated with poor or incomplete Estate Planning in the present. To achieve proper Estate Planning, you must think ahead to the future and the consequences of your current actions to your loved ones. Too many professionals only think of the immediate time in attempting to create legal documents without analyzing and teaching you of the options and consequences in the future.

Benefits of a Living Trust

With a Living Trust you can avoid all probate delays and related costs, both financial and emotional. A Living Trust can eliminate or reduce taxes, court costs and unreasonable delays. With a Living Trust you have complete flexibility as it can be amended (changed) or revoked (canceled) at any time. Should you decide to create a Living Trust, you will keep control of your assets, even at times of incompetency and after your death. A Living Trust can prevent a conservatorship if you should become physically or mentally incapacitated. With a Living Trust, you can preserve your privacy as the Living Trust is completely confidential. A Living Trust allows for quick distribution of assets to beneficiaries. Overall, you can save money, time and future heartache for your loved ones. Trusts are inexpensive, easy to setup and easy to maintain. For more information about the benefits of a Living Trust, please visit Advantages of a Living Trust.

Disadvantages of a Last Will and Testament

A Last Will and Testament will not provide any of these benefits and will only result in court action and legal fees upon your disability or death. For the reasons stated herein, we strongly believe that a Living Trust is a much better option and more cost-effective approach to your Estate Planning goals now and in the future. Last Will and Testaments (Wills) are written under the Arizona Probate Code. Wills must go to probate upon your death for assets to pass to your designated beneficiaries. Living Trusts are written and governed under the Arizona Uniform Trust Code. Under the Arizona Uniform Trust Code assets can pass to your loved ones automatically and immediately without court delay and expense. This is the major difference between drafting a Will or drafting a Living Trust. For more information about the understanding Living Trusts, please visit Understanding Living Trusts.

Choices and Consequences

There are many choices available to you in considering your future Estate Plan. All choices have consequences. It is imperative that you get educated in the various choices that you have and the consequences of these choices before proceeding forward with your Estate Plan. At ALTA Estate Services, LLC, we dedicate ourselves to meeting with clients to discuss and educate you on these various options and resulting consequences. We will meet with our clients AT NO CHARGE through our Education Workshops or initial consultations with the intent to first educate our perspective clients of the law surrounding your future Estate Planning and consequences to your family and loved ones. This is a vital first step that everyone should take before proceeding forward with their Estate Plan. Please contact us for how you can obtain further information or schedule a free consultation by calling (520) 797-1400.