Do I Need A Will Or A Trust?
Mark asks Dave to explain the difference between a will and a trust.
QUESTION: Mark asks Dave to explain the difference between a will and a trust.
ANSWER: Everyone needs a will but not a trust. You leave money in a trust by virtue of your will. The will tells everyone what to do with your stuff and your kids when you die. The will can say leave the money in the trust for your kids. You need a will, but not necessarily a trust.
The living trust costs up to $4,000 and is highly pitched, but it’s overdone in the estate planning world. It’s not needed nearly as often as people say—it’s more of a gimmick. You save on probate taxes, but you operate your life in a trust, which is a pain in the butt.
The living will is important, and you need it. It says to unplug or not to unplug in the event of a coma. It keeps a doctor or court or your spouse from deciding to unplug you. That should be part of your will and estate plan.