Probate, Living Will, and Living Trust

Probate is often a topic that no one really wants to talk about. The topic one's mortality isn't always a popular and when it comes to probate, it's no exception. Probate is the process by which the courts settle your estate. Probate can be both expensive and lengthy in duration. Taking the proper steps to avoiding probate is a must when it comes to estate planning.

Setting up a Living Trust is one way to avoid probate. A living trust allows you to transfer or bequeath from one entity to another. A living trust is great because it allows you to avoid probate but also allows you to designate exactly where your funds or property are to go.

Some of the basic terms as they relate to a living trust are trustor, trustee, and beneficiary. If you're the person placing the funds in the trust you are called the trustor. If you're the individual managing the trust on behalf of the trustee, you are the trustee. The beneficiary, for obvious reasons, is the person or entity that will receive the assets or property. A living trust is a great solution and a great way to be remembered.

A Living Will, or medical power of attorney, has quickly become a very important estate planning tool in today's society.

A living will essentially allows you to set up instructions should you be in an accident or suffer from a major injury. The living will can describe what you want in case you're unable to communicate. If you enter a non-responsive state it goes over whether you'd like to be resuscitated or not.

These are some major controversial issues, so you'll want everyone close to you to be aware of your intentions. When and if a living will is needed it will be traumatic enough for those loved ones. Keeping any surprise at a minimum will help.

When planning for your estate it always makes sense to work with an advisor that is well-versed in estate planning. Whether you're setting up a living trust to avoid probate or a living will it's important to work an estate planning specialist.