Q: Which is better, a will or a trust? Isn't a will a lot less expensive?

A: In most cases, a will can be used to accomplish the same death transfer plans as a trust. If your goal is to transfer property to your loved ones after your death, a will should do the trick. Wills are also a lot cheaper to prepare than an estate plan using a trust. A simple will costs substantially less than an estate plan utilizing a trust.

However, keep in mind that you are only weighing the cost of creating the estate plan. If you are going to truly weigh the cost of a will against the cost of a trust, remember that a properly funded trust can save your loved ones a bundle after your death.

For example, consider a simple $200,000 estate consisting of some bank accounts, stocks, cars and a home. The attorney fees on this estate, if probated, can exceed $12,000 . The same estate, if properly funded in a trust, would result in attorney fees in the neighborhood of $2,000 .

In addition to probate avoidance, trusts offer other benefits that you don't get from a will. Until you die, a will is nothing more than pieces of paper you keep in a drawer. The will has absolutely no effect during your lifetime.

A trust on the other hand offers benefits during your lifetime. In the event you become incapacitated, a successor trustee can step into your shoes and take care of your finances. A trust makes the need for a guardianship less likely.

Also remember that, with the exception of the court entering an order determining the amount of inheritance tax due, trusts generally avoid court involvement. Fewer trips to the courthouse means things tend to move along faster and cheaper. Also, since there is no need to open a probate file, your final affairs are confidential. No one will know what you have or who's getting it.

Now I know some of you are thinking that I'm pushing trusts. I'm really not.

Although I'm a big fan of trusts and the benefits they offer, a will and a power of attorney can accomplish a lot of the same things. I like trusts because they are efficient and economical and they give me fewer headaches when I'm settling an estate. I don't like headaches.

On the other hand, keep in mind that you'll be dead during the estate settlement process. Time and money expended will not really be your problem. A client once said to me "Chris, what do I care, I'll be dead". He had a valid point. He won't be around for the payment of final expenses.

Whatever you choose to do, just please do something. Don't go into that great beyond without having something in writing.

Opinions expressed solely are those of the writer. Christopher W. Yugo is a member of the Indiana Bar and a vice president and senior trust Officer for First National Bank's Trust Department. Address questions to Yugo in care of The Times, 601 W. 45th Ave., Munster, IN, 46321. Yugo's information is meant to be general in nature. Specific legal, tax, or insurance questions should be referred to your attorney, accountant or estate-planning specialist.