Question: Should I use a Will or Living Trust to pass property to my loved ones at death?Answer: It depends. Both Wills and Living Trusts can effectively pass property to your loved ones at death. Generally, people use Living Trusts to avoid probate because, in many states, the probate process is arduous, time consuming, and expensive. But in Washington, the probate process is, in most cases remarkably simple, efficient, and inexpensive, so Living Trusts, which tend to be more costly to create and require lifetime administration, may not be the best choice. Sometimes people tout taxes as a reason for Living Trusts, but there is no obvious tax advantage to a Living Trust over a Will. Both Wills and Living Trusts can be used to save death and income taxes. So more times than not, unless there are other reasons compelling for trusts (e.g., real estate outside of Washington, asset management concerns, privacy concerns) we recommend Wills. That said, there is no "one size fits all." Determining which vehicle is best for you depends upon your particular circumstances and desires.
Do you have a tax or estate question? Submit your question to askus@brownsterling.com.
