First things first: LIVING trust vs will
WARNING: Nothing in this post is intended to be legal advice. Always consult with an attorney before taking any legal action.
Living Trusts, Wills & Probate — What does it all mean?
Living Trust. Living Will. Last Will and Testament. These terms often get tossed around like they're interchangeable—but spoiler alert: they’re not. If you’ve ever found yourself nodding along in confusion, don’t worry—you’re not alone. Let’s break it all down in plain English.
First, a Quick Glossary:
Probate: The court-supervised process for managing and distributing someone’s estate after they pass away. It can be time-consuming and expensive—two words no one loves.
Living Trust (aka Revocable Trust): Think of this as a master plan for your estate that avoids probate. You stay in control during your lifetime, and when you’re gone, your chosen Trustee takes over. Bonus: you can change your choices anytime while you’re still alive and have mental capacity.
Will (aka Last Will and Testament): Like a Living Trust, a Will names someone to manage your estate (called an Executor) and lays out who gets what. But here's the catch—it can go through probate.
Trustee: The person in charge of carrying out the terms of your Trust.
Executor: The person appointed to manage your estate under your Will.
Wait... If They Both Say Who Gets What, Why Have Two Different Documents?
Excellent question. On the surface, a Will and a Living Trust might look like they do the same job—and in many ways, they do. But the real difference is in how they're handled after you pass away.
With a Will: Your estate is still subject to probate.
With a Living Trust: Your estate bypasses probate, which often means a smoother, faster, and more private process.
So… Which One Should You Choose?
Here’s how to start:
1. Add Up Your Assets
If you live in California, if the total value of your assets is over $184,500, your estate may need to go through probate (unless those assets are protected by other means—more on that below).
2. Know Your Beneficiaries
Who’s inheriting your estate? If you’re leaving everything to a couple of responsible adults, you might be able to keep things simple.
But if you:
Have minor children
Want to leave assets to an adult who may need help managing them
Own real estate (which often pushes your estate over the probate threshold)
Then a Living Trust is usually the better route.
How to Avoid Probate (Without a Trust)
If you don’t want a full-blown trust, but also want to steer clear of probate, here are your main options:
Option A: Name Pay-on-Death (POD) or Transfer-on-Death (TOD) beneficiaries on financial accounts. Easy, effective, but works best when your estate is small and straightforward.
Option B: Use a Living Trust to hold assets—especially real estate or anything you can’t easily name a beneficiary on.
The Bottom Line
If you’re still wondering whether a Will or a Living Trust is the right move, consider this:
Want to keep it simple, avoid court, and have more control? Trust.
Have a small estate and adult heirs who can manage things themselves? Will (maybe with some POD/TOD accounts) could do the trick.
But when in doubt, schedule a free consultation with me to help you weigh the pros and cons for your unique situation - CLICK HERE TO SCHEDULE