When Steve left Sprint in 2002, one of the unexpected “perks” of his severance package was access to legal services to set up a revocable trust. I was in my early 30s at the time and honestly had no idea what a revocable trust even was. I left all of that to Steve—he was the planner. To be completely honest, I thought it was a bit overkill for our age. We were young, healthy, and it felt unnecessary.
But just a few years later, when Steve was taken from us far too soon, that trust became invaluable. Even then, I didn’t fully grasp the significance of what we had in place. Thankfully, I was surrounded by people who guided me through the storm, and everything unfolded smoothly. At the time, I assumed that’s just how it went for everyone.
It wasn’t until 14 years later—when we lost both of my parents just 76 hours apart—that the true value of having a trust hit me like a ton of bricks. Back in 2019, my sisters and I had met with a lawyer to evaluate whether our parents needed a trust. After reviewing their assets and investments, we collectively decided it wasn’t necessary.
What we couldn’t have predicted was how quickly life would change. Losing both parents so close together left no time to transfer anything into my mom’s name. It wasn’t anyone’s fault—just heartbreaking timing. We ended up spending a significant amount of time and money trying to avoid probate. All of it—every complication, every dollar—could have been avoided with a trust.
Now that we’ve finally closed my parents’ estate, I wanted to take a moment to share a few lessons I’ve learned—especially when it comes to estate planning. My hope is to help others understand why, if given the choice, I would absolutely choose a trust over a will. While there’s certainly a time and place for a will, a trust can often accomplish the same goals with far fewer complications. Through my own experiences, I’ve come to see the real benefits a trust can offer—and I want to help others see them too.
Let’s break it down in simple terms. A will is a legal document that tells everyone who gets your “stuff” after you pass away. But here’s the catch: the process of distributing that stuff has to go through the court system, and that’s called probate. You can write your own will online or hire a lawyer to do it for you. The cost can range from $0 if you do it yourself, to $1,000+ if you hire a lawyer, depending on how big your estate is.
So, what’s an estate? I didn’t really get that term at first, but it’s actually pretty simple. Your estate is everything you own when you pass away—your house, car, money, investments, and personal belongings. The cost to go through probate can vary a lot. For a small estate, it could cost anywhere from $1,000 to $5,000. But if you have a larger estate, it can easily climb to $50,000 or more. Probate can be a real headache. It’s not just expensive—it can also drag on forever. The process can take anywhere from 6 months to 2 years or more, depending on how complicated things are. And during that time, you’ll be paying court fees, lawyer costs, and possibly dealing with a lot of back-and-forth paperwork. The hardest part? You won’t have access to any of the assets until probate is officially settled. It’s a long wait at a time when most families just want to grieve and move forward.
One big reason I always tell people to have a will is if they have young children. A will lets you name who would take care of your children if something were to happen to you. It’s one of the most important decisions you can make to ensure your children are looked after by someone you trust. You can also do this in a trust, but with some added benefits that I will explain.
There are a few different types of trusts, but today I’m focusing on the revocable trust, since it’s the most common choice when people are planning their estates. A trust is a legal tool that lets you choose someone to manage your property or money for the benefit of another person—called a beneficiary.
If you decide to create a trust, the cost can vary. If you’re doing it yourself online, it could cost anywhere from $150 to $500. But if you hire a lawyer, the cost usually ranges from $1,500 to $3,000+.
As life changes—whether you have children or acquire more assets—you’ll want to update your trust. The cost to update it with a lawyer typically runs between $300 and $1,500, though it can be more depending on the complexity of the changes. For simple updates like changing beneficiaries or adding assets, you’ll pay less. But if you’re making bigger changes, such as restructuring the trust or adding tax planning provisions, the cost could go up.
One great feature of a will is that it allows you to name a guardian for your children. The good news is, you can do that in a trust as well. The key difference, though, is that a trust also lets you decide how your assets will be used for your children’s care, whereas a will simply names the guardian.
Clear as mud now, huh? But here’s the bottom line:
While a will might seem like the cheaper option upfront, it can end up costing you or your loved ones a lot more in the long run—especially if the estate has to go through probate. Probate fees, court costs, and attorney fees can really add up and, in many cases, end up being more than what it would’ve cost to set up a trust to begin with. This was the case when trying to settle my parents estate.
And here's another big difference: Wills and the probate process are public—anyone can look them up. A trust, on the other hand, is completely private, keeping your personal and financial matters out of the spotlight.
Moral of the story? Planning ahead might cost a little more upfront, but it can save your loved ones time, money, and stress down the road. A trust not only helps avoid the expensive and public probate process, but it also gives you more control over how your assets are handled—especially when it comes to caring for your children. In the end, it’s about making things as smooth and simple as possible for the people you love.
If you aren't sure where to begin, but you know you need to do something, reach out and I can help!
No comments:
Post a Comment