A Living Trust May Not Be Right for You

The living trust is a very common measure that many people use for estate planning. Although this is a popular tool, it is definitely not for everyone. Here are a few things to consider about why a living trust may not be the right tool for you.

High Cost

One of the major disadvantages of using a living trust is the cost associated with setting it up. In order to get started with a living trust, you will have to pay an attorney to help you with the process. Although this is normal, the cost to set up a living trust is going to be much more than if you were to use a standard will. In fact, you should expect to pay as much as six times as much for a living trust when compared to a will. This means that unless you have a specific reason for choosing a living trust, you may want to avoid using it. Otherwise, you are cutting into your limited resources to set up something that you might not even need.


Another problem with living trusts is that they are notorious for being associated with scams. Many scam artists prey on the elderly in order to try to take advantage of them in regards to living trust. These scam artists try to sell living trusts to the elderly individuals by using high-pressure sales tactics. Typically, they will charge a significant amount of money without actually providing the individual with any value. Sometimes, they will try to sell them a trust kit that is designed to help the individual set up the trust on their own. However, most of the time, these kits do not have any valuable information within them. They often leave out important details of the living trust process and end up costing the individuals a lot of money for nothing.

Refinancing Difficulties

Many individuals choose to place real estate into a living trust. While there is nothing necessarily wrong with this, it can cause you problems if you ever try to refinance the mortgage while it is in the trust. If you try to refinance while it is in the trust, the lender might tell you that you will be unable to do so. You may have to take the property out of the trust while you are refinancing and then place it back into the possession of the trust afterward.

Time Requirements

Another problem with a living trust is that they take a significant amount of time to set up. They require a great deal of information, which means that it will take you and your lawyer much more time to complete than a standard will. If you do not have a lot of free time to do this, you may be better off using a will instead.

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