Tragedy can strike at any time, and no family is immune. We have worked most of our lives preparing for retirement and, in the process, have created an estate (mine, be it modest) that can be vulnerable if you die or become disabled (incapacitated).
Do you know what will happen to your family assets when you die or become disabled? How can your family be torn apart because of resentments surrounding your estate? Who will decide how your assets are divided between your survivors and creditors? What will happen if you do not have an Estate Plan, or what is an “Estate Plan,” and what can it do for you? These are all important questions, and you may have many more questions.

I first recommend finding a reputable Estate Planning and Probate attorney who can answer your questions. Most reputable attorneys will offer a free consultation and can provide education, recommendations, and references if requested. You must trust your attorney, so don’t be afraid to ask; they will not be offended. You may be able to find the information on the attorney’s website or by doing a search for complaints on the Internet.

My second recommendation is to understand that you are never too young to manage your assets; the rules on probate apply to everyone, regardless of age.

The Difference between a Living Will and a Living Trust

First, it should be understood that a living trust is not the same as a living will. These are two different instruments and should not be confused with one another. A living trust is a legal document that ensures that a person’s property is dispersed according to his or her wishes upon death. It can also be used to include issues concerning disabled adults, minor children, and who the deceased wishes to have as guardians for those children.

On the other hand, a living will is a legal instrument that carefully details the types of medical treatment a person wishes to receive or not receive should that person become incapacitated through illness or injury. Today, living wills are incorporated within Advance Health Care Directives.

When you work with a living trust, you transfer ownership of your assets to the trust. You then appoint someone to act as the trustee, who will administer the trust when you are no longer able to do so. The trustee may be a family member, attorney, friend, or even a business establishment such as a law firm.

Having a living trust can save your family and others some problems that might pop up after your death. The main issue that it can deal with is probate. A living trust does not have to go through probate court because your assets are technically no longer yours; the trust owns them. Only items still in your name will be subject to probate. In order to keep your family from having to go through probate, however, you must make sure that all property has been transferred out of your name and into the trust. If you fail to do this, the property may still go through probate.

If you are considering using a living trust, be careful with whom you work with. Companies out there will happily take your money in exchange for what they call do-it-yourself kits, which are all but worthless later when needed. The best way to make a living trust is through a reputable attorney. Some states will not allow the validity of any living trust not handled through a law professional.
You should also be aware that a poorly written living trust can cost your loved ones more money than they might be able to spend. It is very important that you take the time to have your living trust set up correctly and that you transfer your assets into the trust as required. No one likes to think about their demise, but no one wants to burden those left behind. This can be especially important if you have minor children who need a guardian if you are not around to take care of them.
Remember that the laws governing probate can change from state to state.