An Estate is everything you own. This includes your home, bank accounts, retirement plans, investments, annuities, life insurance policies, and cars. Additionally, personal property such as furniture, family heirlooms, and jewelry are included in your Estate. Don’t take the risk of having somebody you don’t know decide where your belongings end up. You should make those decisions.

Probate is defined as a court process by which a Will is verified and validated. This legal process is governed by the State, which means the State is in control. Probate is a legal proceeding. The courts oversee the settlement and distribution of your remaining assets and either approve or disapprove of how it’s being done. These legal fees and other related costs can add up quickly.

It is an agreement or contract stating that upon your death or incapacity, you want your spouse, oldest child, friend, or a corporate trustee (whoever you trust) to take care of you and your assets, and upon your death, disperse them to a list of named beneficiaries. After death, that successor trustee has the legal right to sign over and transfer the assets without a court order. One of the main benefits of a Trust is that it’s private and you don’t have to give up any control.

We believe everyone should have some sort of Estate Plan. Wills and Revocable Living Trusts are the two most commonly used documents in Estate Planning. As there are many differences in the effectiveness of these documents, individual and family needs should be considered prior to setting up your Estate Plan. Making wise, informed decisions will help you ensure that the plan is right for you. The decision on which Estate Plan best meets your needs should be made between you and an attorney licensed in your state.

We need to remember that a comprehensive Estate Plan is not just about the end of our lives, but also about the “here and now.” What if we can no longer conduct our own business due to mental or physical incapacities like an accident, Alzheimer’s, heart attack, or stroke for example? This is why a comprehensive Estate Plan would include additional documents such as Power of Attorneys, Advanced Medical Directives, and Living Wills.

Many people think this might be a wise decision, but a few things need to be considered. For example:

1. When you add someone to your deed, that person now has legal rights to your property the same as you. Therefore, if you want to sell that, you need their permission.

2. If the person you put on the deed is involved in legal proceedings such as an accident, divorce, or bankruptcy, then your property could be at risk.

3. This can create a tax situation involving Capital Gains Tax. You should consult a tax professional before you make this decision.

A Revocable Trust can be amended as life situations change by the Trustor.

An Irrevocable Trust is normally done for a stated purpose and typically cannot be amended by the Trustor. As a result, you give up control to make any adjustments.