Getting a Will: Six Common Questions - NYTimes.com

Deborah Jacobs brought this good article from the New York Times to my attention on LinkedIn.

Estate planning and wills are subjects that most people like to delay talking about, for obvious reasons. However, taking a few hours to discuss minor details like how to title your assets could someday save your heirs a considerable amount of taxes.

One of the most simple steps - but often overlooked - is to hold your assets in a revocable trust rather than titling in your own name. Here's why:

One of the big reasons people set up revocable trusts, also known as living trusts, is to avoid probate, the court-supervised process to settle a deceased person’s estate. Why? Depending on where you live, probate can be a costly and lengthy process. Attorney, court and other fees often cost up to 5 percent of the value of the estate, Ms. Randolph said. Many Californians choose to use revocable trusts for that reason, she said. Be sure to check the probate laws in your state.

Here’s how the revocable trust works: you put all of your assets into the trust, which remains in your control and can be changed at any time. For the trust to work, you need to retitle all of your assets to the trust (a “pour over” will is also typically used to transfer, or “pour over,” any assets that weren’t in the trust at the time of your death). After you die, a trustee that you name distributes the assets according to your instructions, all while avoiding probate.

Thanks Deborah!


Getting a Will: Six Common Questions - NYTimes.com