by Lauren Rickert

Created on: February 08, 2007

Making end-of-life arrangements can be an intense, emotional experience. Often times family members are left feeling confused and slighted because documents are misleading or lack important information. It's essential that the proprietor and those involved in making final decisions fully understand the differences between living trusts and living
wills.

LIVING TRUSTS

What is a living trust? A living trust allows you to incorporate all of your property into one document. The trust then becomes the owner of your assets, which doesn't mean you relinquish control. Rather, as you appoint yourself as the primary trustee, you have the ability to add or remove property to or from the trust.

How would a living trust benefit me and my family? A living trust allows your assets to be dispersed immediately after you die. This prevents your family from having to bear the expense and long delay of probatethe legal process of transferring property titles to the appointed beneficiary. Post-death probationary periods can last as long as two years and often carry with them 10% of your estate's value. Unlike a living will (addressed below), a living trust allows for more privacy because you are not required to register it through the court during probate. Additionally, a living trust gives you the option of transferring management of your property to another person if you're unable to do so yourself.

Should I still write a will? Absolutely. The legal aspects of final documents can be complicating and, should any mistakes be made in your living trust, a will acts as a catch-all of sorts. It will include any property unintentionally excluded from your living trust, as well as any property that was acquired or transferred post-trust. A will also address any assets that were intentionally kept out of the will like credit card balances and checking accounts.

Are living trusts easy to understand? A living trust is designed by you, most often with the help of an attorney. It is created based on your specific wishes and management directives. Therefore, you will have a very thorough understanding of it from the beginning.

Who should utilize a living trust? Anyone who wishes to avoid the burden of probate and keep their affairs private should employ a living trust. This option is the least expensive, and provides the grantor freedom to modify directives and ensure that property will be distributed efficiently upon his or her death.

LIVING WILLS

What is a living will? A living will is a legal document

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