Do You Really Need A Living Trust? Explained In 3 Minutes

Let's make this simple. When it comes to a state planning, you really have three choices. You can do nothing. You could use a will, or you can use a living trust. And the big difference is not just paperwork. whether your family ends up dealing with court cost delay and a mess when you die. In this video, I'm going to explain what a living trust is and what it isn't in about three minutes. Now please share this with anyone you know who's trying to make that decision. Now let's go over the options. Number one, doing nothing. If you die with your assets in your own name, your home, your rental properties, your bank account, your brokerage account, your business interest, those assets usually go through probate other than things that have a beneficiary, like, let's say, your life insurance or your four one. Most things are what are called probate assets. This means your family has to go through the court process to get authority to gather the assets, deal with the debts and transfer what is left. And this means assets get frozen, which means time, attorneys fees, court costs, paperwork. This means delay. Option two use a will. A will is better than nothing because at least now you're giving instructions to the court. You're saying who gets what you're saying, who you want in charge. You're saying how you want things handled. But a lot of people misunderstand what a will actually does. A will does not avoid probate. Will has to go through probate to work. So lots of delay attorneys fees, costs and hassle on average about 18 months. Right? So yes, will gives directions, but it sends your family to court to carry out those instructions. That is because a will really only takes effect when you die. Option three use a living trust works differently. It works. While you're alive. You create it. Now you sign it. Now you transfer assets into it now. And while you're alive, you still control everything. You can change the trust. You can revoke it. So no, you're not giving up control. What you're doing is changing how those assets are owned. And that matters because when assets are properly titled in the trust, they are no longer probate assets. They do not have to go through probate. When you die, that saves time, that saves money, that saves attorneys fees and annoyance. And it keeps fighting to a minimum as well. That is the real benefit. Less court, less delay, less expensive, less hassle for your family. And there is another big difference. A living trust is not just for death. It also works during your lifetime. If you become incapacitated, a successor trustee can step in and manage trust assets for you without your family having to go to court to get control. And if you thought probate was bad, try a conservatorship or guardianship proceeding. Living trust avoids that as well. And that is huge. So here's your options. Number one do nothing. Your family deals with probate. Use a will. Your family still deals with probate, but with instructions. Use a living trust. You have a chance to keep properly titled assets out of probate and make life easier for you and the people you care about, and it works during your lifetime. Now, a living trust is not magic. It does not automatically eliminate any taxes, and it does not replace every estate planning document. It only works if you actually fund it. Our living trust also includes several other documents that you need as well, like powers of attorneys, health care directives and living wills. Friend of life decisions A living trust is one of the best tools available because it works during your lifetime, during incapacity and at death. And I'll put a viral Living Trust video I did at the end of this video. If you want to do a deep dive, and if you want the best free place to start, download my free emergency binder now to get started with a great plan. Yep it's free. I'll put the link in the show notes for you. And if you still want help building your own plan, use the link in the show notes to request a strategy session or just type consult in the comments. Good luck!