If you are looking to save money on your estate plan, then you might think that you should get a will since they are cheaper to get than a trust. However, trusts are actually cheaper overall.
Estate planning can be expensive upfront for some people. In most cases, a will is less expensive to get than a trust. This is because trusts normally require more of the attorney’s time to draft and implement. This leads many people to get wills to save time and money.
The problem with is that a will is more expensive overall than a trust, as the Times Herald-Record explained in “Trusts will cost you less at settlement time.”
When someone passes away, someone must then administer either the will or the trust to make sure that property is distributed as the deceased directed.
Using a will requires going to probate court and having an executor, who can charge for the service, go through the process of administering the estate.
On the other hand, using a trust means that a trustee, who can also charge for the service, is required to distribute everything, the trustee normally does not have to go to court, which makes it a much faster process. The speed means that the trustee may charge much less overall.
In the end, the trustee may be a lot cheaper than any money that might have been saved by getting a will instead of a trust.
When getting an estate plan created, it is important to use the instruments that work best for your situation. Do not be afraid to get a trust because of the initial expense.
It just may be cheaper in the long run.
Reference: Times Herald-Record (August 2, 2017) “Trusts will cost you less at settlement time.”