• Our Promise to You During COVID-19/Coronavirus
    • Skip to primary navigation
    • Skip to main content
    • Skip to primary sidebar
    • Skip to footer
    • Home
    • Who We Are
      • About Our Firm
      • Attorney and Staff Profiles
      • Scott P. Schomer Certified As Specialist In Estate Planning, Trust And Probate Law
      • Trust and Probate Litigation: Verdicts and Settlements
    • Services
      • Legacy Planning
      • Probate
      • Asset Protection & Business Planning
      • Trust Administration
      • Trust, Probate and Estate Litigation
      • Estate and Gift Tax Figures
      • Family-Owned Businesses
      • IRA & Retirement Planning
      • LGBTQ Estate Planning
      • Loss of a Loved One
      • Power of Attorney
      • SECURE Act
      • Special Needs Planning
      • Young Families
    • Probate
      • Is Probate Always Necessary In California?
      • Why Hire A Probate Attorney
      • Probate Administration
      • Probate & Estate Planning Savings Calculator
      • Probate Code 850 Petitions
      • Probate Disputes
      • Probate In California
      • Probate Laws
      • Probate Litigation
    • Elder Law
      • Conservatorship
      • Coping with Alzheimer’s
      • Estate Planning
    • Resources
      • Elder Law
        • Elder Law & Medicaid Definitions
        • Elder Law Reports
      • Estate Planning
        • Estate Planning Articles
        • Estate Planning Checkup
        • Estate Planning Definitions
        • Estate Planning Reports
          • Advanced Estate Planning
          • Basic Estate Planning
          • Estate Planning for Niches
          • Trust Administration
        • Incapacity Planning Definitions
        • Is Your Estate Plan Outdated?
        • Special Needs Planning Can Protect Benefits
        • Top 10 Estate and Legacy Planning Techniques
      • Free Estate Planning Worksheet
      • Free Seminars
        • Webinars
      • Frequently Asked Questions
        • Advance Health Care Directives
        • Asset Protection
        • California Adult Conservatorship
        • Estate Planning
        • Estate Planning & Remarriage
        • Frequently Asked Questions For Families Without An Estate Plan
        • Incapacity Planning
        • In-Home Elder Care
        • IRA Inheritance Planning
        • IRA & SECURE Act
        • Irrevocable Trust
        • Legacy Wealth Planning
        • LGBTQ Estate Planning
        • Living Trust
        • Probate
        • Social Security & Medicare
        • Special Needs Planning
        • Trust Administration
        • Wills
      • Newsletters
      • Pre Consultation Form
      • Presentation
      • Published Book
      • Trust Administration & Probate Resources
        • Bereavement Resources
        • How to Know if You Need Extra Help With Your Grieving
        • Loss of a Loved One
        • The Mourner’s Bill of Rights
        • Things You Need To Do When a Loved One Passes Away With a Trust
        • Things You Need To Do When a Loved One Passes Away With a Will
        • Trust Administration & Probate Definitions
    • Reviews
      • Our Reviews
      • Review Us
    • Communities We Serve
      • Los Angeles County
        • Bellflower
        • Cerritos
        • El Segundo
          • El Segundo Probate Resources
        • Hawthorne
        • Inglewood
        • Long Beach
          • Long Beach Elder Resources
          • Long Beach Probate Resources
        • Manhattan Beach
        • Playa del Rey
        • Santa Monica
        • Westchester
          • Westchester Elder Resources
          • Westchester Probate Resources
      • Orange County
        • Anaheim
        • Buena Park
        • Cypress
        • Fountain Valley
        • Garden Grove
        • Huntington Beach
          • Huntington Beach Elder Resources
          • Huntington Beach Probate Resources
        • Los Alamitos
          • Los Alamitos Probate Resources
        • Rossmoor
        • Stanton
        • Seal Beach
        • Westminster
    • Contact Us
    • BLOG
    • Videos

    Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

    Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

    Connect With Us Today (310) 337-7696

    Attend a Free Webinar
    Home » Estate Planning » When Is a Trust Better Than a Will?

    When Is a Trust Better Than a Will?

    June 19, 2021Estate Planning

    11 estate planning 5.30One of the most widely embraced misconceptions about estate planning is the idea that a will is almost always going to be the best asset transfer device. In fact, there are circumstances that can call for the utilization of some type of trust, and we will look at some of them here.

    Efficient Asset Transfers

    There is a foundational drawback that comes along with the utilization of a will as your asset transfer vehicle. You probably want your loved ones to receive their inheritances in a timely manner after you pass away, and this won’t happen if you use a will.

    It would be admitted to probate, and the court would provide supervision during the administration process. In most areas, it will take eight or nine months to a year at minimum, and no inheritances are distributed during this interim.

    On the other hand, if you use a living trust as your estate plan centerpiece, you would act as the trustee while you are living. You would name a successor to assume the role after your death.

    After your passing, the trustee would distribute the assets to the beneficiaries in a timely manner outside of probate. Clearly, if you would like to make sure that your heirs do not have to play a waiting game, you may want to use a living trust to facilitate asset transfers.

    Spending Safeguards and Asset Protection

    Do you have concerns about the money management capabilities of someone on your inheritance list? If you would answer this question in the affirmative, there is no reason to use a will because the beneficiaries will receive lump sum inheritances.

    There would be no spending safeguards going forward, and once the assets are in their hands, they would not be protected from creditors or other litigants.

    Once again, if you use a living trust instead of a will, you do not have to provide inheritances all at once. You can instruct the trustee to provide limited distributions on an incremental basis over time, and the principal would be protected from the beneficiary’s creditors.

    Preserve Your Privacy

    Financial matters are usually handled in a confidential manner, and no one wants the general public to know how they decided to pass along their assets. When an estate is subject to probate, the records are available to anyone that wants to access them, so there is a loss of privacy.

    Since the administration of a living trust is not subject to probate, the details are not available to the public.

    Medi-Cal Eligibility

    Most seniors will need paid long-term care eventually, and Medicare does not cover custodial care. Medi-Cal will pay for a stay in a nursing home, and a Medi-Cal waiver can potentially be obtained to cover in-home care costs.

    Of course, Medi-Cal is only available to people with less than $2000 in countable assets. To develop a financial profile that will lead to eligibility, you could convey assets into an irrevocable income-only Medi-Cal trust.

    As the name would indicate, you could accept distributions of the trust’s earnings, but the principal would not count if and when you apply for Medi-Cal coverage.

    Estate Tax Efficiency

    The federal estate tax can take a hefty bite out of your legacy because it carries a 40 percent maximum rate. Fortunately, most people do not have to pay it, because you can transfer a rather large amount tax-free before this tax would be applicable on the remainder.

    This dollar figure is called the exclusion, and in 2021, it stands at $11.7 million. However, there is a bill going through Congress right now that would reduce it to $3.5 million. And even if this measure fails, the exclusion is scheduled to go down to $5.49 million in 2026.

    If you are exposed to the estate tax, there are different types of irrevocable trusts that you can use to mitigate damage.

    Schedule a Consultation Today!

    We are here to help if you would like to work with a Los Angeles estate planning lawyer to develop a custom crafted plan that ideally suits your needs. You can send us a message to request a consultation appointment, and we can be reached by phone at 310-337-7696.

     

     

    • Author
    • Recent Posts
    Cesar Gil
    Latest posts by Cesar Gil (see all)
    • What Happens If I Leave Property Out of My Living Trust? - December 21, 2021
    • Answer These Questions to Shape Your Estate Plan - December 8, 2021
    • What Are the Medi-Cal Rules for a Healthy Spouse? - December 6, 2021

    Other Articles You May Find Useful

    liquidity
    The Importance of Liquidity in Your Estate Plan
    Los Angeles trust attorney
    What Is a GRIT and Do I Need One?
    What an In Terrerem Clause Can Do for You
    Business Succession Planning May Be Easier than You Think
    The Toll of Serving as Fiduciary
    The Power in Powers of Appointment

    Primary Sidebar

    Schomer Law Group, Los Angeles Estate Planning and Elder Law Attorneys

    Schomer Law Group

    FREE Estate Planning Worksheet

    There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

    Testimonials

    Client Review
    July 29, 2020
        

    We need to update our Living Trust and attended Schomer Law Group’s seminar. Afterwards we made an appointment and were impressed by the attention Scott Schomer and Liran Aliav gave to our case answering all questions and making suggestions how to minimize the estate tax. All the office staff is very friendly and we highly recommend Schomer Law Group.

    Frank & Jutta R
    Client Review
    July 29, 2020
        

    Mr. Schomer does an amazing job at explaining all the intricacies of establishing a trust. He and his team help you every step of the way so you always know what to expect and what you are preparing for. Best education you can get and the best gift you can give your family.

    Paula M.
    Client Review
    July 29, 2020
        

    We put off getting a trust for years. After attending a seminar with Scott Schomer we realized that the time had come to get a trust. We were given very good reasons for why we should get a trust. No pressure, just the plain facts. We are very relieved and happy to finally get our trust. Scott and Cesar were very knowledgeable, helpful and listened to our ideas of what we had to say. Any questions that we have now and in the future they are available to assist us to solve them. I recommend the Schomer Law Group and I wish we knew about them years ago.

    Phillip G.
    Client Review
    July 29, 2020
        

    When you’re presented with an invitation to attend in a mailer, you may have reservations, this was a truly gift!! My wife and I were educated and guided through the process of creating a family trust.
    Both of our parents had attorney’s that “worked” with wills/trusts, but came up short. Fortunately, the Schomer Law Group was there! This is a group of attorney’s that only specialize in estate planning, law, and financial advice, so you know you’re getting expert and personalized advice. This is the best money we’ve ever spent!! Thank you!

    Bob L.
    Client Review
    July 29, 2020
        

    We knew we had to update our 10 year old ( 20 page ) trust. After several detailed meetings, Liran and Cesar produced a large ( 300 pages + ) highly detailed trust document that we have used to make sure our family estate is well managed and clearly understood.
    They were all very helpful in answering myriad questions and explaining all the various options…

    We would strongly recommend the Schomer Law Group to anyone with an estate of even modest means, to assure proper planning…

    Bob S.
    Client Review
    July 29, 2020
        

    We had contemplated updating our will and starting a trust for a number of years. After attending a talk by Scott Schomer we realized we were long overdue and the potential downside of not having our affairs in order was significant. Scott and his excellent team made the process simple and seamless. They were great listeners, addressed all our concerns and even pulled and processed all the paperwork from our financial institutions. If you are looking for assistance with estate planning, wills and trusts, we highly recommend Schomer Law Group.

    Robert F.
    Client Review
    July 29, 2020
        

    Very competent & informative – friendly atmosphere – ready to answer the most mundane questions – relaxed.

    Joan S.
    Client Review
    July 29, 2020
        

    Mr. Schomer was excellent in getting our family trust and estate affairs in order. My husband and I had put off doing this and Scott really made the process easy! He is very passionate in making sure his clients get all that they need and we really appreciated it. I would highly recommend him and look forward to the many years he will be available to assist our family.

    Kim

    Follow Us

    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram

    Blog Subscribe

    • This field is for validation purposes and should be left unchanged.

    Office Address

    El Segundo
    222 North Pacific Coast Highway., Suite 130
    El Segundo, CA 90245
    Phone: (310) 337-7696
    Fax: 310-337-1277

    See Larger Map Get Directions

    Office Hours

    Monday9:00 AM - 6:00 PM
    Tuesday9:00 AM - 6:00 PM
    Wednesday9:00 AM - 6:00 PM
    Thursday9:00 AM - 6:00 PM
    Friday9:00 AM - 6:00 PM

    Footer

    • Advantages of Working With Our Firm
    • About The American Academy
    • Disclaimer
    • Privacy Policy
    • Sitemap
    • Contact Us

    Schomer Law Group

    Connect with Us

    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram

    footer-logo
    © 2022 American Academy of Estate Planning Attorneys, Inc.

    Schomer Law Group

    Attorney Advertisement.

    © 2022 American Academy of Estate Planning Attorneys, Inc.