Virtual Questions & Answers

What is estate planning?

Estate planning is the creation of a definite plan for managing your wealth while you’re alive and distributing it after your death.

What are your planning options?

These are the four basic methods you can use to plan your estate:

• Do nothing

• Hold title to your assets in Joint Tenancy

• Create a Will

• Establish a Revocable Living Trust

Why do so many estate planning professionals recommend a Revocable Living Trust?

A revocable Living Trust is a complete will substitute. It can control all of your assets both during your life and after your death. Here’s how it works: When you set up your living trust, you transfer the title of all your major assets (stocks, bonds, real estate, etc.) from your name to the name of your trust. You then name yourself as the trustee and beneficiary. That gives you, and you alone, total and complete control of your assets. You can buy, sell, trade, do whatever you want - just like you do now.

Here’s the difference, the real benefit of it. When you die, there will be no assets left in your name, and, therefore, no probate for your family to endure. Whomever you name as your successor trustee will immediately gain control of your assets to distribute them according to your exact instructions.

What is Probate?

When you think about it, probate is not difficult to understand.  At your death, your assets need to be distributed to your heirs, your debts need to be paid and any loose ends to be looked after.  You, obviously, can’t sign the deeds, write the checks or handle your business affairs.  The probate court takes over those duties. 

What happens if you do nothing?

Believe it or not, a majority of Americans choose to do nothing.  Unfortunately, for the majority who have no plan in place, state law will dictate how their estate is to be distributed at death.  As you might imagine, the government’s plan of distribution may not carry out your particular wishes.