A living trust is the cornerstone of a good estate plan. Like a will, a living trust allows you to transfer your property to your beneficiaries after you pass away—but with several key differences.   A living trust is not subject to probate, a trust gives your successor immediate access and control of your assets, and a trust remains relatively private.

You can think of a trust like a box that you place your assets into.  The trustee (typically yourself) controls the assets in the trust, just as if they were in your own name.  Upon your death, title to the assets remains in the trust, and an individual you selected previously takes your place as trustee of the trust, with full authority to manage the assets and distribute them per your wishes.

This is especially significant if you have minor children.  In the absence of a trust, a guardian would have to be appointed for minor children to manage their assets and report back to court on a regular basis, ensuring a steady income for your favorite attorney.  With a trust, the trustee can manage trust funds for the benefit of the children, with significantly reduced fees and costs.

Power of Attorney

A power of attorney appoints an agent to make financial decisions for you if you are unable to do so.  This is especially important in an estate planning context, ensuring that someone you trust has the authority to manage your affairs if you are incapacitated.  During your lifetime, a power of attorney and advance health directive are two of the most important documents in your estate plan.

A power of attorney appoints an agent to make financial decisions for you if you are unable to do so.  This is especially important in an estate planning context, ensuring that someone you trust has the authority to manage your affairs if you are incapacitated.  During your lifetime, a power of attorney and advance health directive are two of the most important documents in your estate plan.

An advance health directive appoints an agent to make medical decisions if you are incapacitated.  One of the most important decisions you can authorize another to make is the authority to terminate life support if you are in a vegetative state.  During your lifetime, a power of attorney and advance health directive are two of the most important documents in your estate plan.