While working in real estate I am amazed at how many people do not have their homes in a trust or a will.  Considering the state can take up to 10% in probate, it is more important than ever to have a trust and a will.  Here are the terms for you to review...

Probate is a legal process that usually involves filing a deceased person's will with the local probate court, taking an inventory and getting appraisals of the deceased's property, paying all legal debts, and eventually distributing the remaining assets and property.  This process can be costly and time-consuming.  Many states have simplified probate for estates below a certain amount, but that amount varies among states.  If an estate meets the state's requirements for "expedited" or "unsupervised" probate, the process is faster and less costly.

A trust is a legal arrangement where one person (the "grantor") gives control of his property to a trust, which is administered by a "trustee" for the beneficiary's benefit.  The grantor, trustee and beneficiary may be the same person.  The grantor names a successor trustee in the event of incapacitation or death, as well as successor beneficiaries.

A living trust, created while you're alive, lets you control the distribution of your estate.  You transfer ownership of your property and your assets into the trust.  You can serve as the trustee or you can select a person or an institution to be the trustee.  If you're the trustee, you will have to name a successor trustee or distribute the assets at your death. 

The advantage of a living trust?  Properly drafted and executed, it can avoid probate because the trust owns the assets, not the deceased.  Only property in the deceased's name must go through probate

A will is a legal document that dictates how to distribute your property after your death.  If you don't have a will, you die intestate, and the law of your state determines what happens to your estate and your minor children.  The probate court governs this process.

To learn more about estate planning strategies, talk with an experienced estate planning attorney or financial advisor, and check out the following resources:

AARP:  1-800-424-3410; http://www.aarp.org/.

The American Bar Association, Service Center, 541 N. Fairbanks Ct., Chicago, Ill 60611; 312-988-5522; www.abanet.org/publiced/publicpubs.html

Council of Better Business Bureaus, Inc., 4200 Wilson Blvd. Suite 800, Arlington, VA 22203-1838; 703-276-0100; http://www.bbb.org/

The National Academy of Elder Law Attorneys, Inc., 1604 North Country Club Rd., Tucson, AZ 85716; 520-881-4005; http://www.naela.org/

The National Consumer Law Center, Inc.,18 Tremont St. Ste.400, Boston, Mass 02108-2336; 617-523-8014; http://www.consumerlaw.org/

When working with clients I emphasize how important it is to put their home in a trust.  I know we all don't want to think about dying, but it is more important to be READY! 

Are you or your clients prepared?   What did you do to get equipped?