Is It Better to Have a Will or a Trust in South Carolina?

When beginning the estate planning process, you may wonder: Is it better to have a will or a trust in South Carolina? The answer depends on the value and complexity of your estate, and how you wish to divide assets among your beneficiaries. Every resident of South Carolina needs some form of an estate plan. A qualified estate planning lawyer can guide your decision and help you determine whether you need a trust in addition to your will.

Differences Between Wills and Trusts

Wills and trusts are both flexible documents that can be revised, revoked, and amended as life circumstances change. While a simple will can provide for the transfer of property and the division of assets, as well as allow you to designate a guardian for your children if you should die when they are minors, a will is not always enough to prevent a probate case. Wills are also a matter of public record and accessible to anyone who wishes to view them after your death.

A trust can further protect your assets from probate because it is a private document that incorporates specific details about how you would like your assets divided. When establishing the trust, you appoint a trustee to oversee the administration of the trust and distribute assets after your death. Most estate plans that include trusts use a living trust, or revocable trust, which allows you to control and manage the assets held in the trust during your lifetime.

There are other kinds of trusts, such as irrevocable trusts, which may have some tax benefits, but are less flexible than revocable trusts. A special needs trust can designate assets for the care of a disabled person, and an educational trust can provide certain assets for a beneficiary’s education. Any of these trusts can be included in an estate plan. A Rock Hill estate planning attorney with knowledge of South Carolina trust laws can advise you on which trust can serve your needs.

How Wills and Trusts Relate to Probate

Every day, residents of South Carolina die intestate, which means they die without having a valid will. According to statistics, only 24% of Americans have a will, and only one fourth of Americans have even spoken to their loved ones about establishing a will or a trust, leaving a significant number of families vulnerable to costly, lengthy probate proceedings.

While all wills must be validated by the probate court before the dispensation of assets, a trust can bypass the need for probate altogether. Wills can also be contested by outside parties, including creditors and estranged family members who may have a claim on the estate.

For small estates in South Carolina valued at less than $45,000, the probate process can be relatively simple. For estates that surpass this threshold, a formal probate case must be initiated by the executor or representative of the estate.

With a revocable trust, which is often paired with a pour-over will to address any assets not covered by the trust, your beneficiaries can often bypass probate entirely. The assets in the trust are distributed according to your wishes, by your designated trustee, simplifying the transfer of real estate, fiduciary accounts, and any other assets named in the trust.

Do I Need a Trust?

If you own multiple properties, a business, have a large estate, or have an inheritance you wish to designate to a specific beneficiary, or you’re the parent or guardian of minor children or a disabled person, a trust provides the most protection for your assets when paired with a will. Even though the up-front costs and time involved with drafting a trust may seem daunting, a qualified estate planning lawyer can ease the process considerably.

With over 8 decades of experience serving the citizens of Rock Hill, Fort Mill, and the surrounding area, Mack & Mack Attorneys are well-versed in South Carolina wills and trusts, with a wealth of knowledge to assist you as you begin the estate planning process. We can draft an estate plan that will streamline the probate process at the York County probate court and establish a trust that honors your final wishes.

FAQs

Q: Do I Need a Will or a Trust in South Carolina?

A: Everyone should have a will, especially if they are the parent or guardian of minor children. Wills vary in their complexity, and a pour-over will, even when you have a trust, is still necessary. A will can designate that all assets be given over to a trust, for example, and address any assets not included in the trust.

Q: Why Is a Trust Better Than a Will?

A: Trusts function as an added layer of protection for your estate plan, privatizing the dispensation of your property and allowing for a streamlined transfer of assets to your beneficiaries after your death. A trust can include real estate, fiduciary accounts, allowances for educational expenses, and long-term care for disabled loved ones.

Q: Does a Trust Override a Will in South Carolina?

A: Generally, a trust takes precedence over a will in South Carolina, but these documents must be drafted according to Title 62 of the South Carolina Code of Laws. All wills and trusts must adhere to these guidelines to be valid. When you hire a will lawyer to create these important documents, you reduce the chances of having an invalid will or trust, sparing your beneficiaries a lengthy, costly probate process.

Q: What Are the Disadvantages of Having a Trust?

A: While a trust brings several benefits, creating a trust involves additional costs for establishing and maintaining the trust, as well as time to organize the trust and create the necessary paperwork. Trusts can also carry potential tax implications that could affect the grantor and beneficiaries. This is why it is crucial to consult with a qualified attorney who can help you understand the benefits of a trust in South Carolina.

Ready To Create Your Will or Trust? Hire a Will Lawyer With Experience

At Mack & Mack Attorneys, we know how essential it is to plan for your family’s future. With over 85 years of experience, spanning four generations of estate planning law, our client-first approach can help you make an informed decision about wills and trusts. Contact us today to schedule your consultation.