Here’s the dirty little secret about that – if you leave even one asset out of the trust at the time of your death, you have to go through probate anyway. The biggest mistake that many people make with respect to revocable living trusts is that they assume that they do not have to do estate and inheritance tax returns as everything passes outside of probate.
- If you live in a state where it is cost effective to avoid probate.
- If you have real estate in multiple states, especially if one of those states is a state where probate is costly. (If you own real estate in multiple states, your heirs must go through probate in each state to transfer the property.)
- If your family requires immediate access to money and other assets after you pass. If you have to go through the probate process, it may take a while.
- If you want privacy. Wills are public documents.
- For individuals who require help managing their money while alive and a Power of Attorney just doesn’t suffice.