I do not know the difference t\between the two. My wife and I are going on vacation and we do not have a will or LT done. We have about $600K in assets which include a fully paid house and retirement plans (401K). We have four adult children that anyone of them could be executor of the estate we have. I think I need to do one of the two, a Will or LT. I have only two weeks to do this.
1) Which one should my wife and I do?
2) How fast can this be done?
This is a very common situation. Generally, impending travel or hospitalization drives estate planning off the back burner for most people.
In California, your choices include (1) a Will for each of you or (2) a revocable living trust. Other ancillary documents are recommended in both cases that I will discuss later.
A Will is a document that is best prepared by an experienced attorney to assure its validity although it can be handwritten (a "holographic" Will). A simple Will identifies your family members, appoints who will act as your personal representative (formerly called an executor) to administer your estate , and directs where your assets will go when you pass away.
If you elect to have a living trust prepared, you will also execute a "pour over" will which directs that any assets not in your trust will be transferred into your trust and be governed by the terms and conditions of your trust.
A living trust has many benefits in the appropriate situation. If properly funded with your assets, it avoids probate, a court procedure that otherwise determines where your assets will go and can be costly. Probate fees are negotiable, but if based on the statutory schedule in the probate code, the attorney fees on a $600K estate would be approximately $15K.
I hasten to add that the value of your 401K would not be included in your probate estate. The proceeds of that account will go to the beneficiaries you have named on that document. but should be reviewed as part of your estate planning process.
A revocable trust is often recommended when the client owns a home, has assets of more then $100K, and children. You meet those criteria on all counts. While a trust is more expensive to set up than a will, the benefits in the long run outweigh the initial cost difference.
Other documents that are highly recommended include but are not limited to a financial
power of attorney
and an advanced health care directive for each of you.
You should be able to find a knowledgeable attorney in your area by searching the web. is an excellent site for that purpose and allows you to quickly compare the credentials of various attorneys. Money Magazine has also recommended www.aaepa.com as a good site to find a qualified estate planning attorney in your area.
If you are prepared (e.g., you know who you would like to administer your estate [executor or successor trustee], who you would like to receive your assets when you are gone, and have accurate records of your assets) you should be able to find an attorney who can complete the plan of your choosing before your leave on vacation and you will also have the peace of mind of knowing that this important piece of your lives has been addressed!
John D. Laughton, Esq. is an estate planning attorney licensed to practice in California for more than 30 years and is a member of the American Academy of Estate Planning Attorneys. He practices in Monterey, CA. This answer is for informational purposes only, does not constitute specific legal advice, and does not create an attorney-client relationship with any person. The author emphasizes the need to engage qualified legal and financial professionals when preparing individual estate plans or resolving specific legal issues.
Any estate planning attorney wants some time to do a full review of your situation. However, if you make an appointment right away they should be able to help you. It is not uncommon for people to think of this just prior to travel plans. Interestingly, I never did more wills ever in my practice than in the 2 winters after 9/11/2001, as people flew out on their winter vacations.
Basically, a will directs that your property be given to those who you select. A will needs to go through probate. A living trust also divvies up your property to those who you select, but if it is done properly, you avoid probate. It is true that the living trust costs more now, but in the long run it saves your heirs/kids much money/time/effort/attorney fees.
This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.
The problem you are going to have is that a good estate planning lawyer won't even have an opening to meet with you for an initial meeting before you leave on vacation.
As for how fast can it be done, how much are you willing to pay? Someone will have to completely rearrange his/her schedule if they are going to accommodate you.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
It is possible to get a living trust done by a qualified attorney within a few days. I routinely get drafts out to clients the next business day after meeting with the clients.
You may also want to consider looking for an attorney who is certified as a specialist in Estate Planning, Trust and Probate Law by the State Bar of California.
Karen M. Brown, Esq.
Law Offices of Karen M. Brown
400 N. Mountain Avenue, Suite 239
Upland, CA 91786
Phone: (909) 985-6100
