**A will** is a legal document that goes into effect after your death and conveys your wishes about how to distribute your assets. A will gives you the power to make decisions about how your estate will be divided. In the document, you can appoint a guardian for minor children. A will must go through probate court which is costly and time-consuming.

**A trust** is utilized while you’re still living. Assets can be transferred into a trust, which states who you want to manage and distribute your assets if you are incapable, and who receives them when you pass away. Trusts allow you to be more specific about how and when your beneficiary would receive your assets. A trust is more costly than a will but it avoids probate court which can save time, court fees, and transfers the assets directly to your beneficiaries.


Probably the number one reason that people create a trust is to avoid probate court, allowing your beneficiary to receive assets directly.  It may also reduce estate taxes because these assets will not be considered part of your estate. A will must go through probate court which is a lengthy process. There are court fees associated with this. It is time-consuming and because it goes through court, it is a public record.

A trust allows you not only to designate where your assets will go, but it also allows you to manage how and when a person should receive them. For example, if you have a grandchild, you may wish to distribute those funds once he/she becomes an adult, or if someone has a disability, you may wish to have funds distributed over a period of time.

A power of attorney is someone that you appoint to make medical and/or financial decisions on your behalf if you become incapacitated due to an injury or illness. You can set up a power of attorney without having a trust through advanced medical directives, but you cannot name a power of attorney in your will since that does not come into effect until after death.

Assets are transferred directly from your trust to the trustee after you pass away. Unlike a will, a trust is kept private because it does not go through probate court, making it a public record. Ifyou don't want the public to know what's in your will, a trust is a good idea.

Tp summarize, the benefits of a trust include:
- Avoiding probate and reduce estate taxes
- It allows you to manage assets
- Offers the ability to name power of attorney
- It's kept private

A will can be easy to create and amend. There are many online resources, but consulting an attorney is still recommended before doing this yourself. Trusts are more costly and time-consuming to prepare but could help you save in the long run by avoiding probate.

If you have minor children, a will can be extremely beneficial. **If you do not have a will, the court will decide who will care for your minor children.**  This may be a sibling or close relative, but it may not be the person you would have chosen.

A will allows you to designate the person to execute your will and who receives your assets. A will can also cover anything that was not transferred into a trust.

Since a will does not take effect until death, you control everything you own. A trust requires that you transfer ownership into a trust, which will be distributed after you’ve passed away. However, this can be a hassle, especially if it's an asset. You may need access to your checking account or home if it's part of a trust. 

In short, the benefits of a will include:
- It's easier to create and less costly than a Trust
- You can name guardianship for minor children
- You have the ability to designate a person to execute your will
- You keep full control of your assets while you’re living

A will is a good idea if you have a straightforward estate and not many assets. A will is a good idea if you have minor children. 

A trust is a good idea if you have a large estate or business. If you have a smaller estate, the costs of creating a trust may exceed the cost of avoiding probate.

Even though you may cover a lot of assets in your living trust, you should also create a “Pour-Over Will”, for any property that you left out of the trust.

The purpose of a will and trust are similar. They both allow you to choose where to distribute your assets when you pass away. Determining if you need one or the other, or both can be difficult.  Consulting with a local estate attorney can guide you through the process and help determine which is right for your estate plan. For more help in understanding the differences in a trust vs will, please enter your information here and one of our highly trained staff will reach out to answer all your questions.

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When you’re faced with the inevitable, how do you want your assets passed on to your loved ones? Your estate is everything you own. You can pass assets along to your loved ones by using a will, a living trust, or a combination of both. There are certain advantages to each of them, but not everyone needs both.

Creating a will allows you to distribute your values to who you want when you pass away, but a trust allows you to manage your assets while you’re still living. An estate attorney can help you find out which one is right for you.

Read on to learn what you should know about Trusts vs Wills.

Trusts Vs Wills

- Estate Tax
- Gift Tax
- Generation-Skipping Tax
- State Inheritance Tax

### Estate taxes 
Estate taxes can be imposed at the state or federal level. Many states match the exemption of $11.7 million, but there are some states that have a much lower threshold. As an example, Oregon has an exemption of $1 million per person. A local attorney will be able to determine if your estate may face this tax. The rate of the estate tax can be as high as 40%.

### Gift Tax
A Gift Tax applies when you give assets to an individual during your lifetime. However, you can give any individual up to $15,000 ($30,000 if you’re married and filing jointly) without it being taxed. You can give up to $11.7 million during your lifetime.

### Generation-Skipping Transfer Tax
The Generation-Skipping transfer tax is imposed if an asset is transferred to someone who is 39 years younger. The design of this tax was to eliminate individuals from not being subject to estate taxes each time something was transferred grandparent to parent to child.

### State Inheritance Tax
State Inheritance Tax is imposed on certain heirs that would inherit the assets. Most states do not have an inheritance tax, but check with your local attorney for the current tax laws.  A spouse is usually exempt from state inheritance tax. More distant relatives or those who are not related to the deceased typically face the highest inheritance tax rates.

For the majority of families, you will never need to worry about estate taxes. If you do, here are a few ways to keep your estate below the $11.7 million thresholds.

### Give Gifts
You can give a person up to $15,000 tax-free ($30,000 if you’re married and filing jointly) and you can give up to $11.7 million of your wealth as gifts before getting hit with the gift tax.

### Set up a Trust
When you move assets into a trust, they are typically no longer considered part of your assets. A life insurance policy is considered part of your assets, so moving it to a trust can eliminate it from your total assets. However, if you die within three years of making the transfer, your life insurance is still considered part of your taxable estate.

### Make Charitable Donations
If you leave assets to a charitable organization, they can be deducted from your total assets.

### If you’re not afraid of running out of money, spend it.

Although your estate may not be subject to these specific taxes, discuss all the costs that your estate may incur when it transitions from you to your loved ones. A local attorney will be able to help you understand the wealth transfer taxes in your state as well as the court fees and costs associated with your assets. For more help, enter your information here and one of our highly trained staff at SAO will reach out to answer your difficult tax questions.

Wealth Transfer Inheritance Tax Avoidance

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You have likely heard the word estate tax and may think it sounds intimidating, but do you know what it actually means? An estate tax is imposed by the federal government on the transfer of property at death, but only if the assets are valued at over $11.7 million per person. Fewer than 1% of the population will actually pay federal estate tax. Keep in mind, taxes can vary from state to state and some states have a lower threshold.

Wealth Transfer Tax Avoidance

You may be under the impression that estate planning is only for the wealthy. These important documents are important for everyone because it spells out what your final wishes are. 

Estate planning:
- Allows you to choose who will inherit your assets
- Protects your financial and medical needs if you became unable to do so
- Minimizes disputes between family members over your assets
- Reduces inheritance taxes for your loved ones
- Helps avoid probate, which is a very lengthy and costly court process
- Protects minor children by assigning a guardian in the unfortunate event of an untimely death

Without an estate plan, the court will decide how to distribute all of your assets. This includes real estate, personal belongings, and finances.  IWouldn't you like to have a say in who receives these assets? Without a plan, your loved ones could face the burden of making decisions for your health, dividing up your possessions, managing family arguments, major tax expenses, and court battles.   


When we’re young, strong and vibrant, we don’t think about what would happen if we suddenly became incapable of making our own medical or financial decisions. Naming a person that you trust through a Durable Power of Attorney will help ensure that these decisions are made in your best interest. Having a healthcare proxy and living will can help make sure that you receive the care you need and desire. 

Many people feel strongly about what lengths medical professionals will go to to keep them on this earth. Your opinions will only be heard when you've properly planned.  Otherwise, your preferences are just best guesses made by surviving family members.

Communicating your intent for personal assets during estate planning goes beyond your dining room table or the closet full of clothes. Your assets include all of your personal belongings as well as your home, vehicles, savings and checking accounts, life insurance policies, stocks, bonds and mutual funds. Any liquid assets or investments are included in your estate plan. It may not be an easy decision to make now, but at least it will be **your**decision.

Grief and money can bring out the worst in even the best of people. Estate planning ensures that your assets go where you want. You decide who gets what, how, and when. Without a plan, your family will have to make these decisions, and that process can get ugly. Even worse, your estate could go to probate, where the court will make those decisions and take fees throughout the process. You can alleviate the emotional stress and tension between your loved ones as they cope with losing you with an estate plan.

About a dozen states enforce an estate tax, and some enforce an inheritance tax owed by the recipient of the assets. Maryland is one of the only states that currently enforces both an estate tax and an inheritance tax. A major reason for an individual to create an estate plan is to reduce the tax burden placed on their loved ones who will inherit the estate.  

Certified, experienced estate attorneys in your state can help you divide your assets among multiple beneficiaries and set up strategic trusts to minimize taxes. Doing this leaves significantly more value behind for your beneficiaries. Keep in mind that federal estate taxes are only applicable to situations where the estate holds significant value (over $11 million).

Probate is the court-supervised process of validating (proving) your will, determining the value of your assets, paying off any remaining bills and taxes, then distributing whatever is left of your assets to who the court decides should get it. The probate process takes a considerable amount of time, it's costly and could cause a great deal of stress on your family. It also reduces the amount of inheritance your beneficiaries receive. Estates can be tied up in probate for a considerable amount of time.

In the event that both parents die unexpectedly before their children 18, there needs to be someone to provide for them. Without a will that names their guardians, the courts will step in to decide who will raise your children.


Creating an estate plan may not be a relaxing walk in the park, but the right professionals can make the process efficient and less stressful. Facing these decisions about your personal belongings and health is difficult, but it helps protect you and your family.  

Don't face these difficult decisions and complex paperwork on your own. Reach out to a local, knowledgeable adviser who will help put your wishes into a legal document. You can make it much easier for your loved ones to handle things once you are gone. 



Why Estate Planning Is So Important for Family

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Estate Planning ensures that your loved ones are taken care of and allows you to choose what happens to you and your personal belongings. It certainly will not be as fun as planning a vacation or buying a home, but consider these reasons why estate planning is important for your future.  