Trust Package versus Will Package

After receiving several requests from prospective clients for a sheet listing the factors affecting the decision between a trust package and a will package, I drafted the following. This is not an exhaustive list of factors, but it is a good start. There is no substitute for meeting with the attorney, so I can ask all of the nosy questions that will affect my recommendation of whether a trust is needed or advisable in your case. - Lane

Trust Package versus Will Package

1.              Cost.  $2,000 to $3,000 for a Trust Package, versus only about $1,000 to $1,500 for a Will Package.  Basically twice as much for a trust package.

2.              Probate.  A normal, smallish probate, without litigation, costs $7,000 to $10,000.  Sometimes less, sometimes much more.  Planning = savings.

3.              Amount of Assets.  The more assets in an estate, the more it will make sense to spend a little more for extra protection and planning.

4.              Number of Children.  The more children who are involved, the more likely a trust is a good idea.  If it is a single child, then a will may be fine.

5.              Conflict.  If any of the kids have every had a fight or a period of time where they did not communicate, a trust may be advisable.

6.              Minors.  Their share can be protected until a later age (25, 30, 35, etc.) at a lower cost with a trust than with court supervision.

7.              Blended Family.  A blended family is much more likely to benefit from a trust, especially if the kids did not grow up together and are not close.

8.              Real Estate.  A house can be transferred TOD to a single child, but multiple children would be in a real estate partnership.  A trust can avoid the need for a civil action to divide real estate or force a sale.

9.              Special Needs.  Do any children or grandchildren have special needs (i.e. disability, SSI, Medicaid).  A Trust will protect their benefits and inheritance.

10.           Protect Vulnerable Beneficiaries.  Beneficiaries with issues regarding spending, spouse, drugs, alcohol, gambling can be protected with a trust.

11.           Business Interest.  A trust is more likely to keep an LLC or Corporation out of a probate proceeding and provide continuity in business operations.

12.           Contingency Planning.  A trust provides the most layers of contingency planning and avoids unintentional results of beneficiaries predeceasing.