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I was thinking of having a Living Trust drawn up for the benefit of my wife should I pass away so that she would have access to all of our assets without going through probate.

It occurred to me that she already has full access to virtually all of our assets because she's on the title to the house and she's listed as the primary beneficiary of my non-retirement and retirement mutual fund accounts.

Is there any need for me to draw up a Living Trust? It seems that she should automatically be recognized as the legal owner of all of our assets in the event of my death even without a Living Trust or Will. What am I missing here?

Barney Cowell
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2 Answers2

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Everything depends on your local law.

In general, joint assets are not a problem whereas sole ownership assets are. Depending on location, the size of the estate may determine the need for probate.

Probate fees are usually larger than trust settlement fees. In my US state, the last time I settled a family member's estate, the maximum charge for probate was 4% versus 2% for a trust (15+ years ago).

You need a will in either case.

Probate is open to the public. A trust provides more protection and less transparency and is more effective in protecting against a party contesting the will.

And no, I'm not a lawyer but you should consult one for such decisions.

Bob Baerker
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Sit down with a lawyer who deals with estate planning. They can determine if the way your current assets (house, car, bank accounts, investments) are titled is appropriate to your situation and goals.

They will be able to determine if items need to be re-titled, and if there needs to be a trust established, or a will drawn up. They will know what transfers automatically and quickly and won't need a will or trust for it to happen, and what needs be in the documents to avid having to go through the court.

They will also be able to help you plan for situations such as kids, eldercare, long-term care, so you know the types of changes that may need to happen in the future.

mhoran_psprep
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