Trusts are generally cheaper, which is why we like them. Legal fees for the probate process could be 3% of your estate, but that number could fall down to 1% for distributing trust assets.

We should point out here that many states have simplified the probate process to the point where a living trust may be unnecessary. In some instances, your executor can validate your wishes for your estate simply by mailing a certified copy of your death certificate to the county probate court. Be sure to check with an estate planning attorney or your county probate court to determine the laws in your state.  A family should consider long term care insurance to prevent dilluition of family wealth.

There are two types of living trusts: revocable (which means you can change it while you’re alive) and nonrevocable (which means you can’t change it). For many individuals, we like revocable living trusts because they offer flexibility (taking care of you while you’re alive), privacy and speedy asset distribution. But they’re not for everyone.