4. Trusts are Private – Wills are Public

The Probate process is a public process. Florida Law (Section 732.901) requires that the custodian of the will must “deposit the will with the clerk of the court . . . within 10 days” after finding out the person has died. Creditors and potential beneficiaries have to be put on notice so they can file claims and even contest the Will. 

Conversely, a Trust is inherently private. As mentioned above, they are administered behind closed doors. Only the grantor, trustees, beneficiares, and people you choose will even know of its existence, let alone its terms.  

5. Trusts Enable Flexibility and Control

You may be thinking, wait “flexibility and control” seem a little contradictory, but it’s not. A Trust’s rules, terms, and distributions obligations are all set by the person creating it – the Grantor or Creator.

A Grantor can put provisions in the trust requiring a trustee to strictly adhere to its terms, or can allow them flexibility and discretion to make decisions within a set of general criteria. Other aspects of the Trust are customizable to meet the Grantor’s wishes and desires, including circustances like handling property, corporations, distributions to charities, and so on.

The lifespan of a Trusts can be as short as a few weeks or months (if assets can be gathered and distributed that fast), or can continue to exist for the life of your kids, grandchildren, and even your pets (see below). 

Like a Trust, a Will allows you to set the terms of distributions. However, Wills are constrained by laws, and subject to decisions by Judges, not people you designate. Probate proceedings are not meant to stay open forever.

Discretion in the terms of a Will, especially dealing with asset distributions, is not favored and could be seen as ambiguity. This ambiguity may be the basis of conflict and result in a legal challenge. 

6. Trusts Can Hold And Distribute Wealth to Minor Children and Grandchildren

Unlike distributions made in a Will, a Trust can be used to hold and distribute assets for years, decades and lifetimes. This makes it the perfect vehicle to provide for minors, such as children and grandchildren.

Distributions can be set to trigger on a variety of circumstances, such as age or gainful employment. They can also be restricted in situations, for examples if a beneficiary has a drug or gambling problem.

Trusts can be used in situations where your beneficiary has marital problems, and you want to make sure your assets and property are accessible only to your beneficiary and don’t become a marital asset that needs to be split in the event of a divorce.

To prove our assertion, that Trusts have greater flexibility than Wills, when a person wants to build flexibilty into their Wills to care for minor children, they often do so by creating a Trust within the Will. These types of Trusts are called Testimentary Trusts. (Click Here to Read Our Article on Protecting Your Children’s Future: The Importance of Estate Planning for Parents)

7. Trusts Take Effect Immediately

Trusts are effective as soon as they are created. If something happens to the Grantor, like incapacity or death, the named Trustee steps into power immediately. Since the Trust owns the Property, their ability to control the property also takes effect immediately.

On the other hand, the provisions of a Will only spring into action when the person making the Will dies.  From there it could take weeks or months before a Probate matter is filed and a Personal Representative appointed by a Court. Very little can be done during this time.

Banks, morgage and credit card companies, landlords, will often not be able to fully and legally deal with the deceased’s loved ones until a Personal Representative is officially approved by Order of the Probate Court.

Additionally, with so many things done online these days, it could be months before a Personal Representative or loved one could obtain access online accounts. A Trustee would alwasy have access to these Trust owned accounts and assets. 

8. Trusts Offers Asset Protection

We talked about “expenses” and “costs” above, but you might not have realized that Trusts offer asset protection too, and Wills do not! Yes, you are reading this one correctly.

That is because once ownership of property and assets are given to the Trust, they become a Trust asset and property. A revocable living trust, the type of Trust most people create, generally allow its creators while they are alive to freely move property in and out of the Trust at their discretion.

Once they pass away, the Trust assets are locked. That separation of legal existence creates the asset protection of Trust owned accounts, in a similar way as a corporation does. Furthermore, a Trust does not have to file a “Notice to Creditors” and give them time to submit claims, but a Will does.

Hospital bills and other liabilities that are personal to the Trust’s creator, execept under extreme circumstances, cannot be assessed against the Trust.

That is often why Trusts are used in Elder Law Planning situations. Governmental health benefits received by the deceased for things like nursing home care can be recouped against estate assets in Probate, but cannot be recouped against Trust assets. 

9. Trusts Reduces the Risk of Family Disputes

You may be thinking, both a Will and Trust provide for clarity so there is less chance for family disputes. However, that is not entirely accurate.

Unlike wills, which are subject to probate court proceedings and potential challenges from disgruntled heirs, trusts offer a private and structured mechanism for managing and distributing assets.

By specifying detailed provisions within the trust document, including conditions for asset distribution and the appointment of a neutral trustee, the likelihood of family conflicts and disagreements is minimized.

Additionally, trusts allow for ongoing oversight and management of assets, reducing the potential for misunderstandings or mismanagement that can lead to disputes among beneficiaries. Overall, trusts promote transparency, fairness, and peace of mind, ensuring that the grantor’s wishes are carried out without the risk of contentious litigation among family members.

Finally as noted above, a Trust might include provisions which discourage contests, including stripping beneficiaries of all or part of their designated share of the Trust. 

(Click Here for an Article we Wrote about Celebrities That Died Without An Estate Plan)

10. Trusts Can Be Used To Care For Pets

Imagine your beloved furry friend, looking up at you with unconditional love. Now, consider what would happen to them if something were to happen to you.

Unfortunately, many pets end up in shelters because their owner didn’t plan who would take care of them if their owner died.

Wills can provide money or funding for your pets, but they lack the immediate and comprehensive support that trusts offer.

With a trust, you can establish detailed instructions for the care of your pets, including their dietary needs, medical care, and living arrangements.

By appointing a trustee who will oversee these provisions, you can ensure that your pets receive the love and care they deserve without delay. Trusts provide a seamless transition for your furry companions, offering peace of mind knowing that they’ll be well-cared for, even when you’re no longer able to be by their side.

(Click here to read our article on Pet Trusts – The Essential Guide).