Did you know that more and more people in West Palm Beach are using testamentary trusts and other will substitutes to avoid the pains of probate? What are the big differences between your will and a pour over trust?
What is a Testamentary Trust?
- It is would be best to start with the basics.
- A testamentary trust is one that is designed to act in a similar manner to a will.
- These documents also require the same level of formality as a will does in West Palm Beach.
- One common form of testamentary trust is the so called “pour over will.”
- These are an exception to the general rule that a trust needs property to exist.
- They allow for these trusts to stay empty until you pass away at which time the trust will be funded through your probate estate.
- This can avoid a lot of the pains of probate for your relatives as the personal representative has to pay one beneficiary- your trust!
- Sounds simple right?
- How is that different from what happens with a will?
How is a Testamentary Trust Different From a Will
- One big difference was already mentioned named the ease of administration.
- In other words rather than having a personal representative that has to deal with a few (or a ton) of different beneficiaries, now there is just one – the trust.
- Another big advantage that is seldom mentioned is privacy.
- Did you know that all wills in West Palm Beach are a matter of public record?
- Obviously certain personal information like social security numbers and bank account numbers are redacted.
- But the rest is still public this may include the naming of certain assets.
- That is not the case with a trust though.
- Absent litigation, trusts will remain private.
- These are just a few of the advantages of using testamentary trusts as will substitutes.
- If you want to learn more talk to an experienced Palm Beach probate litigator today.
- Make sure to ask them if using a traditional will is right for you or if you could benefit from the use of a pour over trust arrangement in West Palm Beach.