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Benefits of a living trust Avoid probate. Probate is the court-supervised legal process in which your estate is distributed ing to your last will and testament. ... Protect your loved ones' privacy. ... Have greater control and flexibility. ... Protect your assets during your lifetime.
Wills Require Probate, Trusts Don't A probate court may take 12-16 months to chart out a distribution plan. A typical probate process can cost up to 10 percent of an estate's value. Properties passing under trusts, on the other hand, avoid probate.
A will is a legal document that can outline your wishes for how you'd like your assets to be distributed after you die. In contrast, a living trust allows you to manage your assets during your lifetime as well as after you pass away.
Furthermore, there are recurring administrative costs such as trustee fees, tax preparation fees, and legal fees. Ongoing Record-Keeping: Trusts also require meticulous record-keeping and can be complex to understand and manage. There is a strict legal framework that must be adhered to, which can be daunting for many.
DISADVANTAGES OF A TRUST Most importantly, a trust will cost more than a last will at the initial stage of planning and you have to provide more information up front.
If you have no will, it passes via the Alabama intestacy laws. When you create a living trust in Alabama, you pass your property outside of probate. This means there is no court process and no public record of what is in your trust or who you are giving it to, which can provide you and your beneficiaries with privacy.
The main difference between wills and trusts is that wills take effect after you die, while trusts can take care of your assets while you're still alive. Trusts can avoid probate, the court process for distributing your property; wills, on the other hand, typically must go through probate.
The cost of creating a living trust in Alabama varies significantly depending on the method you choose to use. There are online websites you can use that will cost you no more than a few hundred dollars. Using an attorney, on the other hand, may cost upwards of $1,000.