Are you considering setting up trusts to protect your wealth and to keep it out of probate? Experienced Palm Beach probate litigators know that there are several benefits to using testamentary trusts as a will substitute. Did you also know that you can avoid a lot of the expenses of setting up a formal trust by using pay on death accounts and transfer on death accounts? Learn more.
Wills vs. Trusts – What is the Difference?
- In West Palm Beach a will has to go through the probate process.
- Do you know what that means?
- First of all court records are public record in Florida and West Palm Beach so anyone could look up that information.
- Furthermore probate requires some formal oversight by a judge and a personal representative.
- A trust on the other hand is not public and is not filed with the court absent some dispute on the matter.
- Also there is no probate and court related process the trustee merely administers the trust under the agreements.
- The only way this gets to court is if there is a dispute.
- This is a big change compared probate where by default things will get filed.
- One of the downsides of a trust though is that they are expensive to set up, often requiring an experienced Palm Beach probate litigator.
- Another thing is usually you are going to need a lot of money in there so that the trust property can make enough money to pay the beneficiary and pay the expenses of managing the trust.
- Is there some alternative for smaller amounts of money to pass outside of probate?
- Thanks to an old case out of New York, yes there is.
What is a “Totten Trust”
- In re Matter of Totten is an old probate case out of New York.
- A man left a bank account as titled “In trust for [Name]” and the courts had no idea what to do with it.
- In the end the court said this formed a sort of trust.
- This is known as a pay on death account and they are completely acceptable in Florida.
- Do you see the large benefit?
- The property stays out of probate!