Five Reasons Why You Should Choose a Trust over a Will

Avery RobinsonNo CommentsMichael McClure

Can’t decide between a Will and a Trust?  Here are a few reasons why a Trust may be the preferred way to go.

  • First, and possibly the best reason why, a Trust will help keep your assets out of probate. Probate is the process in which the court gets involved to determine the validity of the Will, handle potential disputes between heirs, and process creditor claims.  Further, probate can take valuable time, tie up assets, and run up legal fees and other costs.  Not to mention probate is a public process while a Trust offers greater privacy.
  • Second, depending on the Trust estate and nature of the Trust, a Trust can serve to protect your assets against creditors while giving you the flexibility to control your legacy and who gets what when you have passed away.
  • Third, you can establish your Trust in a way to reduce potential federal estate taxes. For example, you can direct the Trustee of your Trust to disburse annual gifts to your children and/or grandchildren.  Currently, annual gifts can be made up to $15,000.00 without incurring a federal estate tax.  It is important to note that any such gifts will count against your lifetime cap of $11,580,000.00 (up to $23,160,000.00 for a married couple).
    • Idaho does not have an estate tax or an inheritance tax.
  • Fourth, a Trust can provide an easier way to pass along real property. For those looking to establish a flow of income for their heirs, a Trust can establish that certain real property be used as a rental property with the rental income to be distributed amongst the beneficiaries over a period of time.  In the alternative, a Trust can direct that the real property be used for the benefit of a beneficiary with special needs.  Or, most commonly, direct the Trustee to sell the real property and how the proceeds are to be distributed.
  • Finally, a Trust provides more flexibility in managing your property if you were to become disabled and unable to do so. For example, in a revocable Trust, a successor Trustee can fill in for you and manage the Trust on behalf of the beneficiaries without using the court to establish a guardianship and/or conservatorship.

Call (208) 331-9393 for Michael C. McClure at Brian Webb Legal for a consultation to decide whether a Trust is right for you.