• What Control Does a Will Give You? Instead of property passing to your heirs, by preparing a Will you can individually select who receives certain assets (i.e. but only those not held in joint tenancy, with beneficiaries designated upon them, or those not in Trust). However, there are some drawbacks to Wills:
  • Wills Do Not Avoid Probate - If there is over $100,000 in assets, probate is required for assets distributed via a Will! Probate is costly and time consuming! It may be nine months or longer before the people named in your Will.
  • Wills Do Not Always Offer Privacy - If probate is necessary, a public court proceeding is required.
  • Wills Do Not Allow for Specialized Plans - Unlike a Trust, the recipient of a gift through a Will will only receive their gift outright. Most specialized plans cannot be created.

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• What Control Does Joint Tenancy Give You? Titling assets as joint tenants with one or more other people allows you to avoid probate entirely. The other joint tenants receive your property at your death with a death certificate and/or filing of a deed. However, there are a few drawbacks to joint tenancy:
  • You Can Not Revoke Your Gift - You are giving a present interest in your assets to the other joint tenant(s), meaning you cannot simply take it back afterwards without their giving it back to you!
  • Joint Tenancy Assets Are Subject to Additional Debts - The assets you place in joint tenancy are subject to any additional debts that the other joint tenant(s) may have.
  • Joint Tenancy Often Causes A Partial Loss of Capital Gains Tax Benefit - At death, there are certain capital gains tax benefits that may be partially lost while holding property in joint tenancy.
  • Joint Tenancy Does Not Allow for Specialized Plans - As with Wills, the recipient of a gift through joint tenancy simply receives the property outright.

• What Control Does Designating Beneficiaries Give You? Designating beneficiaries on an account (such as an IRA, 401(k), or regular bank account) will cause the asset to go to that beneficiary on your death, outside of Probate. Beneficiary designations are handled through your financial institution(s) holding the account(s). Designating beneficiaries is a great way to transfer assets on death, however there are some drawbacks:
  • Beneficiary Designations Are Not Applicable For Certain Major Assets - A home or condominum may not have a beneficiary designated upon it. A variety of types of bank and investment accounts also may not allow beneficiaries to be designated.
  • Beneficiary Designations Do Not Allow For Specialized Plans - As with Wills and Joint Tenancy, the recipient of a gift through a Will will only receive their gift outright. Special arrangements may not be created.

• Trusts Have Zero Drawbacks - Trusts give you the maximum control available, such as:
  • Privacy - Trusts are a private document. Only in certain circumstances does any portion of a Trust become available to the public eye, and these circumstances are commonly avoided!
  • Probate Avoidance - Trusts allow you to avoid Probate entirely.
  • Amendable/Revocable - Trusts are may be amended or revoked at any time! You can change who gets your assets whenever you please!
  • Applicability to All Assets - All assets can be distributed via a Trust!
  • Enforceable Specialized Plans - Trusts allow you to craft nearly any imaginable type of enforceable arrangement for handling your property during lifetime, and after death!

• What Are Some Advanced Uses for Trusts? Beyond the advantages that Trusts offer over other estate planning methods, Trusts allow you to:
  • Save on Estate Taxes - Gift giving, credit sheltering, and more complex plans are possible through a Trust so that you can reduce or eliminate Estate Taxes!
  • Provide For Loved One For The Remainder of Their Life - For example, Trusts can be drafted to allow a loved one to reside at your home until they pass away, but then you can ultimately give the property to your children or other beneficiaries!
  • Stave off Disinheritance - With the correct Trust arrangements, you can be assured that your children of a first marriage are not disinherited by a second spouse after your death!
  • Promote Education for Children - You can create an education trust to finance your children or grandchildren's future education, or creating an ongoing scholarship program for your assets.
  • Care for a Disabled Child - A special form of Trust is used to provide funds to a person that receives public benefits, without supplanting the public benefits!

Wills and other methods of Estate Planning offer partial control. However, with a Trust almost any imaginable arrangement is feasible for carrying-out your wishes.

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