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The only child trope of being the center of attention can suddenly take on a new meaning when they’re thrust into the sole beneficiary role.
Estate planning is rarely straightforward, even when you have just one child set to inherit everything. Without siblings to share the responsibility or the inheritance, your only child may face heightened scrutiny, added pressure or even envy from extended family members.
If your child finds themselves as the sole beneficiary of your estate, there’s less of a chance someone will contest your will. However, writing a will doesn’t cover all of your bases. Below, we discuss the benefits of considering another estate-planning tool instead.
The drawbacks of using a will
While creating a will can be quicker and less expensive than setting up a trust, there are some drawbacks to consider.
First, a will must go through probate once you pass, the legal process of validating the document in court after you die. Probate can be both a lengthy and expensive process. According to Trust & Will, probate fees consume 2% to 7% of an estate’s value, leaving only 93% to 98% for beneficiaries.
Furthermore, there’s always the risk of the will being contested, which can prolong the probate process. While probates are typically wrapped up within a year, a contested will might take longer to resolve.
To avoid these issues, you might consider setting up a living trust — even if you only have one beneficiary.
According to a 2024 LegalZoom report, about 75% of estate plans created in 2021 used wills, while only 19% used trusts. This is because creating a living trust through a traditional law firm can be quite expensive. The National Council on Aging estimates the cost to set up a living trust to be up to $3,000, while the cost to maintain it can range anywhere from $2,500 to $7,000.
This disparity might also stem from the misconception that trusts are only for the ultra-wealthy. In reality, trusts can be beneficial even for modest estates. Plus, you don’t need to strain your bank account to create a living trust.
With Ethos Will & Trust, you can create a living trust online from the comfort of your own home in as little as 20 minutes. All documents created on the platform are vetted by experienced estate-planning attorneys — giving you complete peace of mind. You can also make unlimited updates forever as your life changes, helping you secure your legacy for your loved ones.
You can create a trust starting at just $349 with Ethos Will & Trust. Plus, if you’re not happy with the results, you can get a full refund within 30 days.
Living trust options
A revocable trust lets you maintain control over your assets as long as you’re alive. You can make changes, such as which assets are placed into the trust or who gets to benefit from the trust.
An irrevocable trust, on the other hand, cannot be changed without a court order or the approval of the trust’s beneficiaries. However, assets placed into an irrevocable trust are excluded from your taxable estate, potentially reducing estate taxes. This is especially advantageous for estates exceeding the federal estate tax exemption, which will be $13.99 million in 2025.
What if your estate includes property?
A big part of your estate might include a home you’re trying to pass down to an heir. Both a will and a trust can be used to pass down property, but each has its unique advantages.
If you use a living trust, you’ll maintain control over your home until your passing. There are other options available to you as well, each with its own benefits. For instance, a transfer on death (TOD) deed allows the property to pass directly to your heir without going through probate. This option keeps you in full control of the property while you’re alive.
If you are unaware of the multiple options for protecting and securing your estate after your passing, working with a professional financial advisor can be a great way to get educated. Arta Finance’s expert services can help you generate and pass on tax-advantaged wealth to your beneficiaries.
Accredited investors can connect with a family office that offers multiple services to help you consolidate your finances and secure your loved ones’ future. With Arta Finance, you get estate and tax planning, as well as financial advisory services — all in one place.
You can also invest in alternative and private market assets and structured investments, open a high-yield cash reserve account with up to 4.31% APR, or create a tax-advantaged life insurance policy through Arta Finance.
Create an account with Arta Finance and become a member in less than two minutes.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
