Birdseye Financial
www.birdseyefinancial.com
  • HOME
  • Who We Are
    • Introduction
    • Annual Review
  • Planning
    • Retirement Analysis
    • Asset Lock
    • Strategies >
      • Rule of 100
      • Sequence of Returns
      • Social Security
      • Taxes In Retirement
      • Tax Strategies
      • Tax Free Retirement Book
      • Retirement Tax FLIP BOOK
      • Pension Max
      • Home Equity Management
    • Get Educated >
      • Income Planning
      • IRA Education
      • Wills and Trust
      • Estate Planning Mistakes
      • Veterans
      • College Planning
    • The Questions >
      • Run out of Money?
      • Retirement Income?
      • How much Risk?
      • Losing Money in Market?
      • Advisor Fees?
      • Leave a Legacy?
    • Video Library
    • Financial Concepts
  • Annuities
    • Annuity Education
    • Fixed Annuity
    • Fixed Indexed Annuity
    • Income Annuity
    • Variable Annuity
    • Vital Signs
    • CD vs Annuity
  • Insurance
    • MEDICARE >
      • Medicare Introduction
      • Medicare Review
      • Drug Compare
      • Advantage Plans >
        • 2020 MAPD
      • Supplements
      • Drug Plans
      • Medicare Enrollment
      • Medicare Networks
    • Medicaid Info
    • Health >
      • WA Health Exchange
      • Medishare
      • UNDER 19
      • Apple Health (DSHS)
      • Glossary
    • Dental
    • Disability
    • Life Insurance
    • Long-Term Care
  • Contact US
    • Referral
    • Client Survey
  • ONLINE MEETING
  • Retirement Analysis
  • Schedule Appointment
  • Forms and Links
  • Secure Upload
  • Professional Referrals
  • Calculators
Advantages & Disadvantages of a
​Last Will Vs. a Living Trust

When you pass away, you leave behind an estate composed of your real property, personal property and other assets. Unless you leave instructions defining how these assets should be divided and amongst whom, the state decides which of your relatives will inherit your property. You probably don’t like the idea of leaving your estate up to chance, but choosing the right plan for your estate is confusing. Understanding the difference between a will and a living trust and comparing the benefits and drawbacks of both options can help you make a better, more informed decision and establish the estate plan that works best for your personal needs.

Advantages of Last Will
A last will is the most basic way to plan an estate. A will is very simple to establish, and a testator can draft his own will with little to no up-front costs. Wills offer a lot of flexibility for a testator who has a spouse, minor children or others for whom he wants to provide support after his death. Same-sex partners and unmarried couples can also use a will to grant rights and provide financial support to their loved one where state law normally would not. In this regard, a will allows the testator to plan for more personal matters, such as funeral arrangements, how his children should be raised, care for his surviving pets or anything else the testator could need.

Advantages of a Living Trust
A living trust offers many of the same benefits as a will, but allows the testator to protect her financial privacy by completely avoiding probate. While a will becomes a part of public record during probate, only the beneficiaries of a living trust know how much revenue the trust generates, and only the trustee knows the full extend of the trust’s assets. Living trusts offer more control over the estate’s assets, allowing the testator to form a living trust to better handle her assets, investments and interests, control her business interests and manage her real property during her life, and then pass this authority onto a new trustee after her passing. Living trusts also avoid traditional estate taxes, saving more money for the decedent’s beneficiaries. Moreover, the decedent can establish a living trust during her lifetime, allowing her to take advantage of these same tax breaks while still alive.

Disadvantages of Last Will
In exchange for the flexibility a last will offers, the testator’s estate incurs federal estate tax liability. The testator’s beneficiaries also face income taxes and inheritance taxes, depending on their residential state’s laws, while the inheritance received from a living trust is usually only subject to income taxes and only on income received for the fiscal year. While probate does extend protection against fraud, embezzlement and mismanagement of estate assets, the testator’s will becomes public record once filed. This allows the public to access and review the testator’s will during and after probate. Probate also opens the possibility for challenges against the validity of the will or the testator’s capacity, which possibly can overturn the will and potentially subject the entire estate to intestacy probate.

Disadvantages of a Living Trust
Compared to a will, a living trust is very limited in application. Living trusts can manage and pass on real property, but the decedent cannot arrange care for minor children, grant rights to her unmarried partner, plan her funeral or make other arrangements. Without a will, a living trust leaves the majority of the testator’s personal matters for intestacy probate. Additionally, living trusts cost substantially more to establish because the testator must fund the trust at the time she forms it. Further, while a living trust allows the estate to avoid probate entirely, the court has no way to monitor the estate for potential fraud or abuse and far less opportunity to catch administrators who misappropriate the estate’s assets.
Picture
Click Now to Make Your WIll Online Now!!!
FREE DOWNLOAD
13 Advantages of a Will
Picture
Picture
Picture
Who Are We
  • Contact Us
  • Schedule A Phone Call 
  • FINRA Broker Check
  • ​Insurance Broker Background Search
Our Planning
  • Our Planning
  • Retirement Analyzer
  • Asset Lock​​
  • The Strategies
  • Get Educated
  • The Questions
  • Video Education
Annuities
  • Fixed
  • Indexed
  • Income
  • Variable


Insurances
  • Health
  • Dental
  • Disability
  • Life
  • Medicare
  • Long-Term Care
Get Educated
  • Educational Books
  • ​Social Security
  • Rule of 100
  • Taxes in Retirement
Picture
Picture
Click to Enlarge
BIRDSEYE FINANCIAL DISCLOSURE
Tax and Legal Disclosure

Birdseye Financial, Corbin Lindsey and any associate affiliated with Birdseye Financial, does not offer tax or legal advice. We provide strategies for educational purposes only. You should consult your tax or legal professional for complete information regarding any tax and legal matters.

Website Content
The information listed on this website and on any document from Birdseye Financial that is provided by Birdseye or by a third party has been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Birdseye Financial. While the publisher has been diligent in attempting to provide accurate information, the accuracy of the information cannot be guaranteed. Laws and regulations change frequently, and are subject to differing legal interpretations. Accordingly, neither the publisher nor any of its licensees or their distributors shall be liable for any loss or damage caused, or alleged to have been caused, by the use or reliance upon this information.

All items on this website are not to be considered a recommendation to purchase or to sell an insurance or investment holding. No insurance company has endorsed or reviewed this website content. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used within this website are the property of their respective owners.

We are NOT affiliated with the U.S. Government or Federal Medicare Program

Product Illustrations
​And as always, it’s important to keep in mind that past performance is definitely no guarantee of the future results that you’ll receive in most any financial vehicle.

Online Forms
​Should you complete an online form of any type, you are agreeing to be contacted by Birdseye Financial or one of our referral partners.
Picture
Download Brochure

HELPFUL LINKS
  • ONLINE MEETING Online Meeting Screen Share (Click to Launch)
  • SCHEDULE A MEETING on our calendar (Schedule Now)

​RETIREMENT TOOLS 
  • Retirement Analysis Please complete the Financial Questionnaire (Online / Download)
  • Birdseye Financial Secure Document Upload (Click Here)
  • Secure Investment Management  Secure Document Upload (​Click Here)
  • Asset Lock Track your Investments (Click Here)

  • Optional Online ZOOM Meeting (CLICK HERE)
  • VENDOR ONLY Calendar Booking (CLICK HERE)