Most people believe that when they make a will, that they have eliminated as much pain and suffering to their heirs upon their death.  This unfortunately is not the case.  Wills still require your loved ones to go through a costly probate proceeding, which can take up to 2 years before it is settled, and property can be distributed.  The best process to avoid these problems is to create a living trust.

 

Trusts are unlike wills in several ways.  Wills are executed after a persons death, and have to go through a lengthy probate process before their execution is complete.  Wills are significantly cheaper to set up, but usually the most expensive to execute.

 

Living Trusts are legal instruments that actually hold title to a persons personal property, such as property, bank accounts, stocks, and LLC's to name a few things.  They are "Living Trusts" because they are invoked while you are still alive, and carry on after your death.

 

In order to prepare a living trust, you will need to find a good, competent lawyer.  Your lawyer will create the trust, then will transfer your assets into the trust while you are still alive.  You are then assigned as the Trustee over your trust.  This amounts to your trust actually owning all of your property, however you retain control by being over the trust itself.  As your trust is created, you can assign successor Trustees, typically your adult children, that will take over the trust in the event of your death.  They will then be in charge of distributing the assets of the trust to the named beneficiaries within the trust.

 

Whatever you do, at least make sure that your financial situation is in order with either a will or a living trust.  Dying without a will, also referred to as dying interstate, will then require your property to be distributed by state laws, and generally distributes your property to your spouse and/or your closest heirs.  Also, if you do not appoint a guardian for your minor children, the state can appoint someone you don't want.

 

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