Why Wills Are Worthless?

A question was asked to me yesterday while speaking at the Associated Business Network Breakfast meeting, "what is the difference between a will and trust?"

First, a will unlike a Revocable Living Trust or sometimes referred to as "Living Trust" or even "Trust" must go through probate court. Probate court is a court that determines who inherits your property. Second, a will is a written document that distributes your property upon your death. Unlike a will, a Living Trust is designed to work during your life. For example, many seniors are facing Strokes, Dementia, and Alzheimers and the risk of incapacity is a significant risk. Unlike a will, a Living Trust may have provisions, which avoid guardianship court by owning your property in a Living Trust. Thus, you will not personally own your property but your Living Trust will own your property. This simple difference avoids guardianship court and saves your loved ones a lot of costs and headaches associated with guardianship court. With a will, you can choose guardians but you must go through guardianship court. Guardianship court is a court that determines who is your guardian and supervises every dollar that is spent. Thus, you cannot spend any money without a court order. Third, a will is public information and must go through probate court where as a Living Trust is a private document and only the beneficiaries are entitled to know the details. Fourth, a will cannot reduce your estate tax liability. In contrast, a Living Trust is set up in a manner that minimizes your estate tax liability. Fifth, a Living Trust unlike a Will gives you options to impose limitations and strings on your loved one's inheritance. For example, a common concern among parents is having a minor child receive their inheritance when they are 18 years of age. With a Trust, you can allow your child to get part of their inheritance at age 25, 30 & 35. This protects the child from you and inexperience. Sixth, when you distribute property to your loved ones through a will, their inheritance is subject to their (your loved ones) creditors such as spouse, lawsuits, & collections. A Living Trust enables your beneficiaries to obtain spendthrift protection, which means that their inheritance is not subject to divorce, alimony, lawsuits, or any creditors.

In conclusion, a Living Trust is a very powerful tool. A will is literally worthless compared to a Living Trust. Words simply cannot express the power that Living Trust offer you unlike a will. Why do other attorneys create wills? Because these attorneys are not educated about estate planning and this is not their speciality. Thus, it is similar to a family doctor diagnosing and treating you for a heart condition. Attorneys understand wills a little bit but not much more than this. Many attorneys make a lot of money probating the wills they drafted during their life. I encourage you to research Living Trust and you will find out Living Trust are better than wills.

Sean L. Robertson, Attorney at Law
Robertson Law Group, P.C.
9923 South Ridgeland Avenue, Suite 99
Chicago Ridge, Illinois 60415
w) 312 498 6080 f) 312 377 2480
www.RobertsonLawGroup.com

Sean L. Robertson received his Juris Doctor (JD) from DePaul University College of Law with an emphasis in Tax/Wealth Law. Sean L. Robertson concentrates in Wills, Trusts, Powers of Attorney, Asset Protection, Corporate Law & Litigation law.