Living Trust vs. Simple Will
This table compares the benefits of the revocable living trust and a simple last will and testament. A revocable living trust is an agreement that determines how a person’s assets are handled during their lifetime and how it is distributed after death. A simple Will distributes a person’s assets after death.
Usually, the threshold estate planning question is: Do I need an Oklahoma revocable trust or an Oklahoma Last Will and Testament?
Once that question is answered and the answer is an “Oklahoma revocable trust”, the question becomes ___ Does a married couple need one joint trust or one trust for each spouse?
The answer to this question is relatively easy for me: Almost always it is a joint trust. However, there are circumstances where a married couple can use a trust for each spouse more effectively than they can use one joint spouse. Below is a table summarizing the benefits of a joint trust versus separate trusts for each spouse:
| 1 Family Trust | 2 Separate Trusts |
| Easy to administer during the couple’s life since there is only trust rather than two separate trusts | Allows a couple to maintain separate assets to comply with a pre-nuptial agreement |
| Easy to track and transfer property when there is only one trust to which to make transfers | In a few cases where the marital estate is very very large (probably at least valued at $23,000,000.00), there may be some federal estate tax planning benefit to each spouse having their own trust |
| Less expensive and less complex to administer when the first spouse passes away | Protecting inheritance property. If one spouse is going to inherit property, having a separate trust for the inheriting spouse allows the inheritance property to [usually] remain separate from the marital estate |
This is Episode 4 of Estate Planning Demystified. In this episode, I discuss the Revocable Living Trust in more detail including:
There are any different terms used to describe the same thing: revocable trust, living trust, revocable living trust, family trust, A-B Trust. All terms essentially describe the same instrument:
A. The creation by a person of a legal vehicle, while alive;
B. that has a separate legal existence from the people who created it;
C. to hold property for the benefit of the people that created and other people who are called “beneficiaries”
D. where the people who create it generally maintain full control over it while they are alive
I also discuss some of the benefits of a Revocable Living Trust over a Will include: (1) elimination of the probate process; and (2) immediate and continuous access to assets and to cash flow.
Link to the Will vs. Trust Table
If you want to leave me feedback or ask a question (both of which would be awesome to have), please send me an email at sjr@shawnjroberts.com.
This is Episode 3 of Estate Planning Demystified. In this episode, I discuss how do you know if need a Last Will and Testament or a Living Trust including:
1. Who are the people I want to transfer my estate to?
2. What do I have in terms of assets?
3. Who do I want to care for me when I can no longer care for myself
4. Who will you choose to help make life-ending or
5. life-sustaining discussions?
6. What are the ages and the capacity of the people I give my estate?
7. W ho do I want to take care of my minor children?
Link to the Will vs. Trust Table
If you want to leave me feedback or ask a question (both of which would be awesome to have), please send me an email at sjr@shawnjroberts.com.
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