ARE THERE DISADVANTAGES TO SETTING UP A LIVING TRUST?

As long as you choose your trustees wisely, there really is no downside to having a trust.  The initial cost of setting one up will be higher than a will, depending on how complex the estate is.  But, the advantages of not having to deal with the hassles and headaches (not to mention the cost) of probate for your family is worth the extra expense up front.

IF I SET UP A LIVING TRUST, WOULD I STILL NEED A WILL?

Yes.  You would need what’s called a “pour-over will.”  Your trust would only control assets to which you made subject to the trust.

If for some reason you forgot to transfer a piece of property into the trust, the will would act to sweep up those assets and “pour-over” those assets into the trust, to be administered and distributed according to the terms of the trust.

You always want to have one plan of distribution, not multiple plans.  By pouring over assets into the trust, this ensures that a trustee can distribute all of your property according to the plan you outlined in your trust.

     Willie Elder Law in Austin concentrating in Estate Planning, Medicaid, Medicare, and Veteran’s Assistance. Email bwillie@WillieElderLaw.com  or call (512) 478-0834.