Frequently Asked Questions

Question 1

What’s the difference between a last will & testament and living trust?

Accepted Answer

A last will is quicker and easier to set up, but it needs to go through the court probate process after your death. Probate court can be time consuming and expensive, depending on your state. 
A living trust allows your loved ones to avoid the potential hassle of probate court. But trusts require you to change the title to most of your assets, which means more paperwork and ongoing maintenance.

Question 2

What is probate?

Accepted Answer

Probate is the legal process through which the court oversees how an estate and assets will be distributed. While there are many benefits to having oversight of the process by the probate court, it can be time consuming and expensive depending on your state. 
If you create a last will, your assets will be distributed to your named beneficiaries as part of the probate process. If you create a trust, your assets will be distributed to your beneficiaries without going through the probate process.  
In many states, probate may not be required if the estate is of minimal value.

Question 3

Can I transfer property into and out of the trust while I'm alive?

Accepted Answer

Yes. If you have an individual living trust, you can transfer assets and property, including real estate, whenever you like. Likely, you’ll be your own trustee while you’re still alive. After your death, it will transfer to your successor trustee, appointed by you. Joint trusts require your co-trustor's consent for co-owned property.

Question 4

What is a revocable trust?

Accepted Answer

A revocable living trust can be changed by the person(s) that created the trust. You can change a revocable living trust by amending it or revoking it. An irrevocable living trust, on the other hand, cannot be amended or revoked.

Question 5

Do I still need a will if I have a living trust?

Accepted Answer

Yes, you should have a last will for property that may not have been transferred to your trust. Our living trust includes a pour-over will to help ensure that all of your assets are distributed to your beneficiaries. The will lets you name guardians for your minor children.

Question 6

Will a living trust remain legal if I move to another state?

Accepted Answer

Yes, a living trust is valid in all 50 states, no matter where it's created and signed. You should consider talking to a living trust attorney licensed in the new state to make sure it’s up to date. If you buy real estate or acquire assets in your new state, be sure to transfer it into your living trust.

Question 7

Do I need a lawyer to prepare my living trust?

Accepted Answer

No, it’s not legally required for a living trust attorney to prepare your trust. That said, every person has different needs and you may want to ask an attorney for help, especially if your estate is large or complicated or you have a child with special needs. Some of our living trust packages include attorney advice—unlimited 30-minute calls on new legal matters.

Question 8

What is Assist?

Accepted Answer

Assist is our legal guidance subscription service, which gives you unlimited 30-minute calls on new personal legal matters to vetted attorneys in our network. It is included in our Premium estate plan packages, including Trust Estate Plan Premium, where it also includes comprehensive estate plan review.

Question 9

Can I put my 401k in a living trust?

Accepted Answer

No, you cannot transfer your 401k and certain other kinds of retirement accounts into living trusts. Speak with a living trust attorney for more information about what assets you can include.

Question 10

Aren’t living trusts just for the wealthy?

Accepted Answer

No, despite the higher living trust cost, they’re a good choice for many people. People of all income levels can set up a living trust to manage their finances, assets, and estate in case they become disabled, or to provide for beneficiaries while avoiding the probate process.

Question 11

At what net worth should I have a living trust?

Accepted Answer

Living trusts can be a good choice for people of any net worth. But there are some instances where a living trust may be favored over a will. For example, if you have children with special needs or own assets that may exceed the estate tax limits set by the state and federal government, then a living trust might be preferred. A living trust attorney can advise you on these matters and help you decide what's best for you.

Question 12

What are the disadvantages of putting your house in a trust?

Accepted Answer

The advantages and disadvantages of putting your house in a trust are similar to reasons to have—or not have—a living trust in general. For example, if you put your house in a living trust, you’ll need to transfer the title to the trust, which can be time-consuming. But once the house is titled in the name of the living trust, it can pass to your beneficiaries without going through probate after your death. A living trust attorney can also advise you on these matters.

Question 13

Is it expensive to set up a living trust?

Accepted Answer

A living trust is more expensive and requires more work to establish than a last will, but we offer both DIY solutions and affordable living trust attorney guidance options to suit many budgets. In fact, some of our living trust packages include attorney support with 30-minute calls on new topics to attorneys in our network for a monthly cost that’s less than an hour with an attorney from a traditional firm.

Question 14

Can a living trust help save on estate taxes?

Accepted Answer

It can help reduce estate taxes, depending on how it’s set up. Speak with an estate planning attorney for more guidance.

Question 15

What happens after I order my estate plan?

Accepted Answer

You’ll be all set to start building your estate plan using our online questionnaire. Before you begin, if you purchased a plan with Assist, we recommend scheduling a call with an estate plan attorney from our network to answer any questions you may have about the process.  
Once you’ve submitted your answers, we’ll prepare your paperwork and it will typically be available for download within 2-3 business days so you can review and sign.