Which is Best for You: A Will or Trust?

You are receiving this email because you signed up to receive Bob Carlson's free e-letter Retirement Watch Weekly, or you purchased a product or service from its publisher, Eagle Financial Publications. [Carlson's Retirement Watch Weekly] [Retirement Reports](www.retirementwatch.com/retirement-resources/) [Retirement Articles](www.retirementwatch.com/retirement-articles/) Brought to you by Eagle Financial Publications Which is Best for You: A Will or Trust? by Bob Carlson Editor, [Retirement Watch]( 04/16/2023 SPONSORED [Reserve Your FREE Spot for a Week-Long Trading “Open House” with LIVE trading and No-Cost Recommendations!]( [image]( Join fellow investors and traders from 9:15 a.m. to 10:30 eastern, Monday through Thursday, April 17-21, 2023, as they follow master traders Hugh Grossman and Ahren Stephens trade options LIVE in real time on the S&P 500 Index (SPY). Recently, they’ve bagged 115 winners out of 118 trades, a win rate of 97.4% Learn the secret strategies for banking $300 to $1,000 per day trading a single market. You can also ask questions in a chat box. Don’t miss this rare opportunity to learn how to trade the SPY. [Reserve your FREE seat today!]( [CLICK HERE...]( Fellow Investor, [Bob Carlson]There are two tools available for passing the bulk of your legacy to others. The best choice for one person might not be optimum for another. Either a will or trust can be the foundation of your estate plan. If it’s a trust, it’s usually a revocable living trust. They’re not exclusive. Most estate plans have both a will and one or more trusts. But usually one document controls how the bulk of the estate is distributed and implements your most important decisions. Each tool has advantages and disadvantages. Consider the differences carefully, because the best choice depends on your situation. A key distinction between a will and a trust is that property subject to a will goes through probate. Property owned by a trust avoids probate. Probate has pluses and minuses. The major disadvantages of probate are its well-known cost and delay. Probate requires an inventory of the estate’s assets and liabilities to be compiled and submitted to a court with the will. The court reviews all this and allows people an opportunity to challenge the will. Assets can’t be distributed to heirs until the court approves. The court charges probate fees, and a lawyer or executor (or both) often will be involved and charge fees. In some states it can be costly and expensive for even small estates to go through probate. Probate is not lengthy and expensive in all states. Some states have streamlined probate processes, especially for modest estates, making it less expensive and time-consuming. Some states reserve the traditional probate process for only the most valuable estates. Check with your estate planner about the local process and cost. Lack of privacy is another disadvantage of probate. After it is filed with the court, a will is open to the public. The wills of many celebrities are available online. Bing Crosby is said to have revised his estate plan by shifting most of his assets to living trusts after his first wife died and the details of her will were made public. Many celebrities and wealthy people transfer the bulk of their estates through trusts primarily to avoid publicity. Yet, the public scrutiny of a will and probate can be an advantage. Probate provides checks and balances. In addition to the court reviewing the details, heirs and potential heirs can see the asset inventory presented to the court and the details of how the estate is to be distributed. They can determine if assets are missing, or if someone appears to have persuaded the deceased to change the terms of the will. A will is more likely to be challenged than a trust. Trusts rarely are challenged, partly because their details aren’t public. Also, the rules for challenging wills are well-established, while there is less law concerning challenges to trusts. Some people think using primarily a will instead of a living trust is more efficient over the long term, because it is easy to transfer assets in or out of your estate when they are owned in your name. Anything you own at your passing automatically is included in your estate. With a trust, you have to be sure to name the trust as legal owner of property. We’ve discussed this in the past. Many people have trusts drafted but then don’t transfer legal title of property to the trusts. So, the trusts have no value. The trust must have legal title to assets to provide its benefits. Cost might be a factor for some. A will usually is less expensive to have prepared than a trust. Some attorneys believe trusts are less likely to be updated. They say people know when a will needs to be updated but often incorrectly believe a trust doesn’t need to be revisited. SPONSORED [Claim Your Seat to the Most Important Active Trading and Investing Event this Spring]( [image]( We hope you’ve cleared your calendar for April 17th through the 22nd because you are invited to join 60+ of the industry’s leading trading and investing minds that week at the Wealth365 Summit as we share our top actionable strategies, market predictions, and unique insights for this spring! If you want to cut through the noise and learn specifically what you need to know to trade or invest this spring, you cannot afford to miss this Summit! Don’t miss out, [reserve your seat here!]( [CLICK HERE...]( A living trust, at least theoretically, provides for a smoother transition of management and ownership of property. You initially serve as trustee and manage the property. The successor trustee, or trustees, you named in the trust agreement automatically takes over management of the property after you become disabled or pass away. The successor trustee manages and distributes the trust property according to the terms of the trust. The courts aren’t involved. When you use a will, however, after you pass away, title to property passes from you to the estate and eventually to the final beneficiaries. The probate court supervises the process. If you become disabled, whoever holds your power of attorney has to present it to financial institutions and have them accept it before your assets can be managed. If there’s no power of attorney or financial institutions won’t accept it, the courts become involved. Yet, trustee transitions aren’t always smooth. Financial institutions and others who deal with the trust must decide to accept the authority of a successor trustee. Financial firms, in particular, require a high level of substantiation before they will recognize the successor trustee. While a successor trustee might not have to go to court, it could take some time and expense to complete the transition. It is best to be sure everyone who deals with you as trustee is familiar with your named successor and your plans. As mentioned, you have to follow the legal formalities with a trust. The trustee must be the owner of the property. That means deeds to real estate must be reissued in the trust’s name. Titles to vehicles and some other assets have to be reissued. Names on financial accounts might have to be changed. With the trust, you have to find one or more people able and willing to serve as successor trustees. They must be willing to step forward and assert their position when you appear to be disabled, even if you resist. But you’ll have similar issues with a will, because you must select someone to act as your executor and one or more agents to act for you under a power of attorney. Every estate should have a will and is likely to have at least one trust. The issue is which vehicle you use to transfer the bulk of your wealth to the next owners. Work with your estate planner to determine which fits best with your estate and your goals for cost, efficiency, privacy and more. To a better retirement, [Bob Carlson] Bob Carlson Editor, Retirement Watch Weekly Editor’s Note: Have You Heard Of the “RDZ”? It’s already destroying the retirements of more Americans than anything else on the planet…and forcing nearly half of all seniors to visit a food pantry or use food stamps just to eat. But I have the solution. 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What is the Late Enrollment Period? Find out the answers to these questions and more by [clicking this link.]( About Bob Carlson: [Bob Carlson]Robert C. Carlson is the author of the books The New Rules of Retirement and Retirement Tax Guide, editor and investment director of the popular retirement newsletter, Retirement Watch, and editor of the free weekly e-letter, Retirement Watch Weekly. Bob is a frequent speaker at investment conferences around the country, and you can also hear Bob as a featured guest on nationally-syndicated radio shows, such as The Retirement Hour, Dateline Washington, Family News in Focus, The Michael Reagan Show, Money Matters and The Stock Doctor. To ensure future delivery of Eagle Financial Publications emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. This email was sent to {EMAIL} because you are subscribed to Dividend Investor Daily. 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