Will or Revocable Trust in Georgia

At Peach State Wills & Trusts, we often encounter the question, "What's better for me: a will or a revocable trust?" This is a complex decision with many factors to consider, and there's no one-size-fits-all answer. Instead, it's about understanding your personal circumstances, financial situation, and long-term goals. In this blog post, we'll explore the key differences between a will and a revocable trust, how each works, and which might be the better choice for you.

Understanding Wills and Revocable Trusts

A will and a revocable trust are both estate planning tools that help manage the distribution of your assets after your death. However, they function differently and offer distinct advantages and disadvantages.

Wills:

• A will is a legal document that outlines how your assets should be distributed after your death.

• It allows you to name an executor who will manage your estate, pay debts and taxes, and distribute assets according to your wishes.

• A will only takes effect after your death and must go through the probate process, which is a court-supervised procedure.

Revocable Trusts:

• A revocable trust, also known as a living trust, is created during your lifetime and can be altered or revoked as long as you are alive and mentally competent.

• It allows you to transfer ownership of your assets into the trust, with you typically serving as the trustee, managing the assets.

• Upon your incapacity, a successor trustee takes over for you during the incapacity, managing the assets for your benefit as directed in the trust.

• Upon your death, a successor trustee takes over, paying your bills and distributing or managing the remaining assets according to the terms of the trust without going through probate.

Key Differences Between Wills and Revocable Trusts

The choice between a will and a revocable trust largely depends on your preferences regarding cost, privacy, and the management of your estate.

Cost Considerations:

• Wills: Generally, setting up a will is less expensive upfront compared to a revocable trust. However, the probate process can incur costs, which may include court fees and attorney fees.

• Revocable Trusts: Creating a revocable trust typically requires a higher initial investment. However, it can save money in the long run by avoiding probate fees.

Probate Process:

• Wills: A will must go through probate, a public court process that verifies the will, pays off debts, and distributes assets. This process can take a minimum of six months and sometimes much longer. The probate process is susceptible to challenges, as getting the will admitted to court requires notification to your heirs at law, even if you are disinheriting some or all of them.

• Revocable Trusts: A revocable trust bypasses the probate process. Upon your death, the successor trustee can manage and distribute assets privately and more quickly, without court involvement. A trust may be less likely to be challenged by your heirs as well since there is no probate court filing and no required notification to the heirs regarding the trust.

Privacy:

• Wills: Since probate is a public process, the details of your will and your estate become part of the public record.

• Revocable Trusts: A revocable trust keeps your affairs private, as the trust's terms and assets are not subject to public disclosure.

Situations Favoring a Will

While both wills and revocable trusts have their place, certain scenarios may make a will a more suitable option for your estate planning needs.

• Cost Efficiency: If you are looking to keep your immediate estate planning costs low, a will might be the better choice.

• Simple Estates: For individuals with straightforward estates and minimal assets, a will might adequately address their needs without the complexity of a trust, assuming the person has no aversion to the probate process.

• Guardianship Designations: A will allows you to name guardians for minor children, an important consideration for parents. Therefore, even if someone uses a revocable trust, a will would also be prepared to provide for guardian designations if necessary.

Situations Favoring a Revocable Trust

Conversely, a revocable trust may be more advantageous in certain circumstances, providing greater control and flexibility.

• Avoiding Probate: If you want to spare your family the time and expense of probate, a revocable trust is an excellent tool.

• Concerns About Contests: If you are concerned that your family may fight over the estate and/or you are disinheriting all or some of your heirs, a trust may be appropriate as it may be less likely to be challenged. 

• Multiple States: For those who own property in multiple states, a revocable trust can simplify estate management. Without it, each property would require separate probate proceedings in its respective state.

• Blended Families: A revocable trust can help ensure that your wishes regarding asset distribution among a blended family are honored. It can provide for a spouse during their lifetime while ensuring the remaining assets go to your children from a previous marriage.

Practical Advice for Choosing Between a Will and a Revocable Trust

Making the right choice between a will and a revocable trust involves careful consideration of your unique situation. Here are some practical tips to guide you:

• Assess Your Estate's Complexity:

• If your estate is simple, with few assets and no complicated family dynamics, a will may be sufficient.

• For more complex estates, particularly those involving multiple properties or blended families, a revocable trust could be more beneficial.

• Consider Your Budget:

• If upfront costs are a concern, a will might be the better option.

• If you can afford a higher initial cost for potentially lower long-term expenses, a revocable trust may be worth the investment.

• Evaluate Your Privacy Needs:

• If maintaining privacy in your estate matters is important, a revocable trust will offer more discretion than a will.

• Think About Probate:

• Consider whether you want your estate to go through probate. If avoiding probate is a priority, a revocable trust is the way to go.

• Future Flexibility:

• A revocable trust allows for more flexibility and control over your assets during your lifetime and can provide for easy management of assets during your incapacity, which can be advantageous if your circumstances change.

Special Considerations for Georgians

For residents of Georgia, there are some state-specific considerations to keep in mind when choosing between a will and a revocable trust.

Real Estate Ownership:

• In Georgia, probate courts do not have jurisdiction over real estate located in other states. If you own property outside Georgia, a revocable trust can help avoid multiple probate proceedings, simplifying estate administration.

Blended Families:

• Georgia residents with blended families may find a revocable trust particularly useful in ensuring that their wishes regarding asset distribution are honored. It can provide clear directives for supporting a surviving spouse while safeguarding assets for children from previous relationships.

Contact Peach State Wills & Trusts

Choosing between a will and a revocable trust in Georgia involves weighing several factors, including cost, privacy, probate process, and the complexity of your estate. At Peach State Wills & Trusts, we understand that every individual's situation is unique, and we're here to help you make the best decision for your needs.

Contact Peach State Wills & Trusts at 678-344-5342 or online to learn how to plan for your estate in Georgia today. If you have any questions about estate planning in Georgia, you can download our free guide here; no strings are attached. We're committed to providing friendly, professional, and approachable legal services to help you with all your estate planning needs.