Skip to content
  • Call 24/7 (602) 910-4068
Contact Us
  • 24/7

(602) 932-3187

estate planning law firm
  • Home
  • Start Here
    • Becoming a Client
    • Our Story
    • Our Approach & Values
    • Meet the Team
    • Client Testimonials
  • PROTECT MY FAMILY
    • Estate Planning
    • Wills and Trusts
    • Power of Attorney
    • Deeds & Real Estate Transfers
  • Specialized Planning
    • Minor Children
    • Special Needs Trusts
    • Asset Protection Planning
    • Irrevocable Trusts
  • Elder Care
    • Long term Care
    • Medicaid (ALTCS)
    • Guardianship
  • Probate
    • Do I Need Probate?
    • Avoiding Probate
    • Trust Administration
  • Business Planning
    • Business Formations
    • Business Succession Planning
    • Operating Agreements
    • Employment Agreements
  • Resources
    • Estate Planning Blog
      • Estate Planning
      • Elder Law
      • Probate
      • Business Succession
      • Guardianship
    • Videos & Recordings
    • Seminars & Webinars
    • Free Estate Planning Masterclass
    • Educational Library
    • Estate Planning Resources For Professional Advisors
    • FAQs
    • Media Room
  • Contact Us
    • Schedule Strategy Session
    • Office Locations
  • Home
  • Start Here
    • Becoming a Client
    • Our Story
    • Our Approach & Values
    • Meet the Team
    • Client Testimonials
  • PROTECT MY FAMILY
    • Estate Planning
    • Wills and Trusts
    • Power of Attorney
    • Deeds & Real Estate Transfers
  • Specialized Planning
    • Minor Children
    • Special Needs Trusts
    • Asset Protection Planning
    • Irrevocable Trusts
  • Elder Care
    • Long term Care
    • Medicaid (ALTCS)
    • Guardianship
  • Probate
    • Do I Need Probate?
    • Avoiding Probate
    • Trust Administration
  • Business Planning
    • Business Formations
    • Business Succession Planning
    • Operating Agreements
    • Employment Agreements
  • Resources
    • Estate Planning Blog
      • Estate Planning
      • Elder Law
      • Probate
      • Business Succession
      • Guardianship
    • Videos & Recordings
    • Seminars & Webinars
    • Free Estate Planning Masterclass
    • Educational Library
    • Estate Planning Resources For Professional Advisors
    • FAQs
    • Media Room
  • Contact Us
    • Schedule Strategy Session
    • Office Locations

Should I Use a Living Trust in Estate Planning?

Serving Clients in the Gilbert, Arizona Area

Should I Use a Living Trust in Estate Planning?
  • March 17, 2021
  • Estate Administration, Estate Planning, Estate Tax, Power of Attorney, Probate, Trust Administration, Wills & Trusts
Gilbert Arizona estate planning attorney

BY: Jake Carlson

Jake Carlson is an estate planning attorney, recognized business leader, inspiring presenter, and popular podcast host. He is personable and connects immediately with others. A natural storyteller, he loves listening to your story and exploring what matters most to you.

Get To Know Jake
Please Share!
Facebook
Twitter
LinkedIn
Email
I understand that most people don’t need a living trust because probate is simple in the state, but can having a living trust save you time or money?
  • Scroll Down to Read Article

Nj.com’s recent article entitled “Will a living trust save time and money when settling an estate?” explains that, although probate avoidance is often thought of as a reason to have a living trust, generally speaking, many people who have living trusts also have what are known as “pour-over wills.”

The reason? Individuals frequently have assets that they have not placed into a living trust, such as tangible personal property. Those are things like furniture and household furnishings, a car, or a small bank account. It may also be necessary to open an estate because of unclaimed funds held by the state, a tax refund or return of insurance premiums.

Pour-over wills typically are written so the estate assets will pour over or pour into the living trust at the death of the person who created the trust.

Living trusts have the benefit of privacy and the elimination of challenges to the estate. A living trust can also be used to separate assets acquired before a marriage; or as a vehicle to manage the assets of a person with diminished or lack of capacity, such as a person suffering from dementia.

It’s important to note that financial institutions can freeze up to 50% of the assets in an estate, until a tax waiver is obtained. However, tax waivers aren’t required to transfer legal ownership of trust assets after the death of the person who created the trust. Therefore, financial institutions can’t similarly freeze up to half of the assets in a trust for that reason.

However, there can also be a few disadvantages to creating a living trust. The cost of creating a revocable living trust and a pour-over will is usually a bit more than the cost of preparing just a will.

There may also be expenses involved with transferring assets, such as real property, into a living trust.

The legal fees incurred in administering a probate estate may be more than legal fees incurred in administering a trust after the death of the trust maker.

Moreover, the time it takes to settle an estate may be longer than what it takes to distribute trust assets. That is because it may take months to probate a will and obtain a tax waiver.

However, if the individual has relatively few assets that would be subject to probate, the cost of establishing a trust may be more costly than administering an estate.

Speak with an experienced estate planning attorney about whether a trust makes sense for your unique circumstances.

Reference: nj.com (Feb. 8, 2021) “Will a living trust save time and money when settling an estate?”

PrevPreviousHow Do I Use a Charitable Remainder Trust with a Large IRA?
NextShould I Worry about Medicaid Estate Recovery?Next
Subscribe!

Recent Posts
  • Protecting Your Business with Life Insurance
  • Managing a House After a Relative’s Death
  • How Does a No-Contest Clause Protect Your Will?
  • How to Talk with Children About a Grandparent with Dementia
  • Protect Your Parents’ Savings From Nursing Home Expenses
Categories
  • Advanced Directives
  • ALTCs
  • Alzheimer's Disease
  • Asset Protection
  • Business Formations
  • Business Succession
  • Charitable Planning
  • Dementia
  • Elder Law
  • Estate Administration
  • Estate Planning
  • Estate Tax
  • Guardianship
  • Life Insurance
  • Medicaid
  • Medicare
  • News
  • Power of Attorney
  • Probate
  • Retirement
  • Social Security
  • Special Needs
  • Trust Administration
  • Uncategorized
  • Wills & Trusts

Contact Us

All fields marked with an “ * ” are required

Practice Areas

Conservatorship Lawyer Mesa, AZ
End-Of-Life Planning Lawyer Mesa, AZ
Estate Planning Lawyer Mesa, AZ
Guardianship Lawyer Mesa, AZ

Wills And Trusts Lawyer Mesa, AZ
Living Will Lawyer Mesa, AZ
Business Formation Lawyer Mesa, AZ

Estate Administration Lawyer Mesa, AZ
Asset Protection Lawyer Mesa, AZ
Living Trust Lawyer Mesa, AZ

estate planning law firm
Facebook-f Twitter Linkedin-in Youtube Instagram Rss

Our Mesa Office

2500 S Power Road Bldg 14
Suite 132
Mesa, AZ 85209

Phone Number: (602) 910-4068

Our Gilbert Office

1425 S. Higley Road #106
Gilbert, AZ 85296

Copyright © 2025 – LifePlan Legal AZ. All rights reserved. Some artwork provided under license agreement. Privacy Policy | Disclaimer | Sitemap