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of legal residence (i.e. winter home, lake cabin, rental property, etc.) then a living trust may be a very good option. I mentioned earlier that probate is nothing to fear. That is accurate, but 'foreign property' is the exception that proves the rule. It can be very cumbersome to open and administer probate cases in other states.

B) Need (or extreme desire) for Privacy-This has limited use, as in most cases many property transfers are reported in the local paper. However, if you have control over property that is not currently in your name (ex: owned by a LLC) it may be useful. Further, more and more courts are looking at living trust documents through the 'eyes' of probate law when questions and issues arise-resulting in a negation of privacy.

C) Distrust of Family or Ex-Family-While it can be done, a Living Trust as much more difficult to challenge; whereas a Will is designed to be extremely easy to challenge (not necessarily to win, but to challenge). If you question if your son's third wife (or ex-wife) will cause your estate problems, then consult a good attorney and talk through this option.

D) Control Beyond the Grave-If you have a son whose tastes fall in-line with slow horses and fast women, or if you want to make sure your beloved pet is cared for, or your gravesite if visited and maintained, etc.; a living trust may help. Of course, it doesn't have to be cases as extreme as these; simply one where it is felt that lasting (if not perpetual) guidance and encouragement would be beneficial in meeting YOUR objectives.

If you don't see your situation in any of these four, you may want to consider a simple Will. In any event-Living Trust or not-you MUST have an up-to-date and legally executed Will. If you do have a Living Trust, your Will would most likely be what is commonly referred to as a 'pour-over' Will. In 'legal jargon,' it says: "Whatever is not in my trust at the time of my death is to be placed in my trust."

With the exception of out-of-state property, and even with a pour-over Will; if you are going to fund a Living Trust, it is an all-or-nothing proposition. A partially funded trust can be a real nightmare for those who you leave behind. Do everyone a favor, if you feel a Living Trust is right for you, please spend a great deal of time in the funding process to make it as complete (and accurate) as possible. At your death the "revocable" part of your living trust ceases to exist and it literally takes court action to change what you've done.

Living Trusts: Do or Don't Do, there is no try-Yoda.

Learn more about this author, Christopher Mcgown.
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