Trust officers made only the safest investments. Annual returns of 3 or 4 percent were common. Recently, however, a New Mexico statutory change allows trustees more discretion than they had under the old standard. Returns on trust investments are higher now, and you, in a will or living trust, can direct a trustee to make types of investment that you prefer. As returns increase, risk increases.
Some people are more comfortable with risk than others.
The choice between wills and living trusts isn't critical most of the time. Either document will work for most people. Usually, it takes longer for funds to reach the next generation through a will because property must go through probate. Choosing your trustee, however, can be very important to you and to the beneficiaries of trusts you create. From the standpoint of those who come after you, selection of a trustee can be one of your most important decisions.