Living trusts are often advertised as a solution to avoid probate, which involves a court overseeing the allocation of an estate and related financial and time costs. When such a trust is created, property is not part of a decedent’s estate but instead, it is part of the trust itself. However, sometimes living trusts may not save time and money in the end, as they can cost up to thousands of dollars, often more than probate costs, to set up. In addition, many simple estates distributed by wills never enter probate, unless there are problems raised by heirs or creditors.

One important consideration involved with making the choice between a living trust and a will is whether or not an estate would be likely to enter probate. If so, next consider whether the associated probate costs are likely to exceed those of setting up a living trust and whether or not other ways to avoid probate exist. It is important to realize that upon setting up a living trust it must be funded and assets must be transferred before one’s death. In addition, the creation of a living trust will not protect assets from creditors.

Before creating a living trust, it is important to consider whether one will effectively work in your situation. If it seems to be a good match, a probate or an estate-planning attorney can assist in creating a living trust. Those interested in creating a living trust should beware of those who call themselves trust specialists or certified planners, whose real goals often are simply to sell unneeded annuities and encourage the spending of savings.

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