What is the difference between a will and a revocable living trust?

What is the difference between a will and a revocable living trust?

William: I've been listening to your show this morning, and I'd like to know the difference between a will and a trust.

Attorney Tom Olsen: First of all, a will has nothing to do with avoiding probate. People are genuinely using revocable living trusts for the purpose of avoiding probate. We consider a living trust be a complicated, expensive tool for avoiding probate. We focus on simple tools to avoid probate. Most of our clients can use simple tools to avoid probate, and that does not include using a living trust. For example, making your bank accounts payable on death, using a Lady Bird deed to avoid probate on your home and other real estate.

Now, Chrissy, lets see if we can tick off the reasons why somebody would want to move into a living trust. Number one, you've got young children. You can't leave them your wealth outright when they're under the age of, say 25, for example. You need a living trust. You want to include your young grandchildren, you need a living trust. If you've got a spendthrift child that would blow through their inheritance in no time, you need a living trust. If you've got a child with addiction issues, you need a living trust. What's another one [crosstalk]?

Attorney Chris Merrill: Of course, yes. Also, too, if you have multiple pieces of property. Let's say, again, 10 pieces of property. You would be a candidate for a living trust, as well as, Tom, of course if we have clients that have real estate out of the State of Florida.

Attorney Tom Olsen: In other states than Florida.

Attorney Chris Merrill: Because the only way that you can now accomplish having it all under one and avoiding probate in multiple states is by setting up a living trust. Either way, though, whether it is a living trust or a will, William, both are instruction sets on who is to be in charge, and how your wealth is to be distributed when you pass away.

Attorney Tom Olsen: The takeaway from this is, William, is that you do want to avoid probate. Either you're going to use simple tools, like we use for most of our clients, or maybe you're a candidate for a living trust to avoid probate. William, we're all about helping people to avoid probate here at the Olsen Law Group in Orlando.