When you die, most of your assets will be subject to probate. Probate involves court filings and appointing someone to oversee the process. It can be costly and time-consuming.

One exception to probate is a living trust. A trust is a legal entity into which you can transfer your major assets. When you die, a trustee (someone you named) takes control of the trust assets and distributes them in accordance with your instructions in the trust document. All of this occurs without the involvement of the probate court.

Living trusts offer many benefits in addition to probate avoidance, including privacy and, depending on the value of your estate, tax savings.

To create a living trust, a trust document must be prepared, normally by a lawyer.

Whether a living trust is the best estate planning tool depends on your financial situation, potential tax liability, and other personal matter.

Estate planning can be complicated and therefore legal assistance should be obtained.