A will governs the distribution of property which a person owns at the time of death. It does not include accounts (and insurance policies) which name a beneficiary. A will is beneficial as it can: (1) appoint the person or entity that will control the administration of the estate; (2) name the guardians for minor children; (3) waive the requirement that the representative obtain an expensive surety bond. It is recommended that all individuals have a will in place because it provides clarity to your loved ones after you die, specifies who you want your estate representative to be, and reduces the costs of estate administration.

Whether you or your family need a trust depends on a variety of factors. A trust is an agreement that manages your real property and other assets. In a trust, “the trustee,” holds property for the benefit of another, “the beneficiary.” Trusts can be useful even for people of the most modest of incomes or means. A trustee can be a person, or it can be a bank. Similarly, the beneficiary can be a person, several persons, or it can be an organization like a church, charity, or a for-profit business.

If you die without leaving a will, your assets will be distributed according to the law of the state in which you die. If you have property that is owned jointly, such as a house or a bank account, this property will go straight to the joint owner without the need for a probate estate. Assets that are considered “probate assets” will be distributed to your heirs as set forth by state law.

A living trust is a type of trust agreement that may be changed or amended by the trustee.

In a land trust, individuals place their real property (usually their homes) into a trust. A bank or a title company typically acts as the trustee of land trusts. The only asset that is owned and managed by the land trust is typically a single piece of property.