| Revocable Trust | Will | |
| What is it? | A legal document that places assets into a trust during the Trustmaker’s lifetime, managed by a Trustee, with terms that can be modified or revoked. | A legal document that specifies how assets should be distributed upon death. |
| Who Controls | The Trustmaker retains full control and can change or revoke the trust at any time. | The Testator retains full control until death. |
| Does it go through Probate? | Avoids probate, allowing for a faster and private transfer of assets. Remains private and does not become public record. | Must go through probate, which can be lengthy and costly. Becomes public record once probate begins. |
| NO Asset Protection | Offers no protection from creditors during the grantor’s lifetime but can provide protection after death. | Offers no protection from creditors until assets are distributed. |
| Estate and Income Tax Benefits | Can be set up to protect the trust assets from estate taxes; retains the income basis “step up” at death. | Can be set up to protect an estate from estate taxes; gets a “step up” at death. |
| Flexibility | Can be changed or revoked anytime during the grantor’s lifetime. | Can be modified or revoked anytime before the testator’s death. |
| Cost to Set Up | More expensive to set up due to legal and administrative fees, but if avoids probate also avoids the costs of probate. | Generally cheaper and easier to create. Probate costs not factored in. |
| Ongoing Management | Requires management and funding of assets into the trust. | No management required until probate. |
| Use when…. | Used for avoiding probate, maintaining privacy, as a “Super” POA during the Trustmaker’s incapacity and asset distribution after death. | Ideal for simple estate planning, naming guardians for minors, and asset distribution after death. |
Our law firm is available to assist you and your family members with your planning. For assistance preparing or updating your planning call your attorney at Thrash, Carroll & Sanchez Law Group at 512-263-5400 or email for an appointment for a complimentary initial consultation to discuss these powers of attorney at [email protected]