A LIVING TRUST IS A GOOD ALTERNATIVE TO A WILL
The last Will is the most commonly utilized estate planning document as we all know, but it is important to recognize the fact that you have alternatives. A revocable living trust is one of them and they have become very popular. The primary reason for this is because they enable Probate avoidance.
What is Probate you ask? Probate can be briefly defined as the legal process of estate administration. Your will does not simply get passed around among your loved ones on your funeral day. Its validity must be determined by the probate court, and the heirs to the estate do not receive their inheritances until the estate has been probated and closed.
This process can be time-consuming, and this is one of the reasons why people look for alternatives that provide for the transfer of assets outside of the process of probate. In addition to the time involved, there are significant expenses that go along with the probate process which can routinely consume anywhere from perhaps 5% to 10% of the overall value of your estate.
Probate is also unattractive to many because of the fact that it is a public proceeding and they would prefer that their final affairs remain confidential.
With a revocable Living Trust you avoid probate and maintain control of the assets while you are alive, and as the name implies you can change it or even revoke it if you want to. Should you be interested in the possibility of creating a revocable living trust the wise course of action is to discuss the matter with a good Estate Planning lawyer.