Living Trust vs Will
June 21, 2011 8:40 PM Subscribe
Living trust versus a will for a married couple with minor children and moderate assets?
posted by John Frum to Law & Government (4 answers total) 7 users marked this as a favorite
My wife and I met with a lawyer today to establish a will and power of attorney/advanced directive for both of us. While there, he suggested that we establish a living trust in addition to the will. Based on his explanation of the benefits and drawbacks, I'm thinking I agree that a living trust is the way to go. But, adding the living trust would cost an additional $650, so I want to make sure I'm making the right choice. (We would be in charge of making sure the trust gets funded properly.)
Our details: My wife and I are ~30-year-olds expecting our first child in a few months with hopefully more to come in the future. Our current net worth stands at slightly over $500,000 and will hopefully continue to grow over time. Our assets are a mixture of bank and investment accounts (including 401ks and IRAs). We live in Illinois and own a home. I have an insurance policy through my work. We plan to name one of my siblings as both the guardian of our children and executor of the estate.
Benefits of a living trust (as I understand them):
Easier management of assets for our minor children in the event we both die (such as not having to establish a testamentary trust via probate.)
Easier ability to manage assets in the event of our disability.
Provides more privacy.
Drawbacks of the living trust:
Higher upfront cost.
Hassle of moving our asset into the trust.
So am I missing anything?