What are the disadvantages of a living trust as compared to a will?
• Initial Cost. The initial cost of setting up and funding a living trust may be more than a simple will. • Deeds & Title Changes. Deeds and other transfer documents (e.g. bills of sale, assignments and stock powers) must be prepared and in many cases filed to put assets into the living trust. • Paperwork. The living trust may require additional paperwork while it exists because of sales, new purchases, tax reporting and other transactions. • Wills Still Necessary. If the ownership of all of the property is not transferred to your living trust, it remains subject to the normal rules for transfer of property at death and might pass through a probate. There may be assets which can not be, should not be or were not owned by a trust. A will is needed to cover these and other possibilities. • Taxes. By themselves, living trusts do not save any income, gift or death taxes. An inheritance tax determination may still be required in County Court even if a trust is used.
Initial Cost. The initial cost of setting up and funding a living trust may be more than a simple will. Deeds & Title Changes. Deeds and other transfer documents (e.g. bills of sale, assignments and stock powers) must be prepared and in many cases filed to put assets into the living trust. Wills Still Necessary. If the ownership of all of the property is not transferred to your living trust, it remains subject to the normal rules for transfer of property at death and might pass through a probate. There may be assets which can not be, should not be or were not owned by a trust. A will is needed to cover these and other possibilities.
