The advantages and disadvantages of establishing a living trust should be weighed carefully.

Avoiding Probate’s Cost

Already discussed under the disadvantages of a will, the cost of probate may reduce the amount available to beneficiaries. Typically probate fees will amount to about 4-5% of the estate’s value. But administration of a trust still may result in attorney fees, costs, and the probate of assets of the pour over will. Still, most of these fees are greatly minimized, since the assets placed in a pour over will tend to total far less than the value of the estate in the trust. Attorney’s fees generally will be lower under these circumstances.

Avoiding Probate’s Length

Probate will usually last between 6 months to 2 years. Only at the end of probate may the executor administer the assets of the estate. The administration of a trust can be completed within weeks.

Avoiding Probate’s Publicity

Probate proceedings are a matter of public record, but the administration of a trust is not. This allows for privacy in the distribution of the estate.

Avoiding Probate’s Control

A trust increases the independence and control of the trustee relative to an administrator. There are still mechanisms by which the trustee may be held accountable, but the reduced state oversight often results in less stressful management of personal family affairs.

Trusts Are Beneficial If You Own Property Elsewhere

Trusts are preferred where the settlor owns real estate located in other states as well as California. Placing them into the trust avoids the probate process in those states.