Trusts

While alive, you remain in control and can change the trust at anytime. Upon becoming mentally disabled, you can plan for who will take care of you and your trust assets so that you can avoid having to set up a guardianship. Upon death, a living trust and all the assets within it avoid probate, a legal proceeding which is costly, time consuming and public record. A living trust is also a very efficient way to do tax planning to ensure that you (and your spouse) pass assets in the most tax efficient manner to your beneficiaries. However, a living trust is only effective if it is properly funded (all assets are titled in the name of the trust or beneficiary designations point to the trust). A living trust is considered a will substitute.