Envato Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. If you will, allow us to present the hypothetical case of Pete Moneywise, a married, 78-year-old father of three who wants to get his financial affairs in order before his passing. Though he exists only within the confines of this article, his situation reflects what countless people of retirement age face as they draft their wills and create their trusts. “I hate probate,” Pete tells us in an excl ...

Core Points - The article discusses the importance of creating a revocable living trust to avoid probate, protect privacy, and minimize estate taxes when a person passes away [1][4] - It highlights the complexities and potential legal battles associated with the probate process, using the example of the late entertainer Prince [2][3] - The article emphasizes the need for individuals to structure their living trusts carefully and provides considerations for what to include or exclude [4][11][12] Group 1: Trusts and Wills - A revocable living trust allows individuals to maintain control over their assets and designate beneficiaries, helping to avoid the probate process [1][7] - The process of creating a will is recommended to prevent confusion among family members regarding one's wishes after death [2][3] - The article presents a hypothetical case of an individual, Pete Moneywise, who is preparing his financial affairs, reflecting common concerns among retirement-age individuals [5][4] Group 2: Costs and Services - Ethos Will & Trust offers online services to create wills and living trusts quickly, with documents vetted by estate-planning attorneys [6] - The costs for creating a will start at $149 and a living trust at $349, with a full refund available within 30 days if unsatisfied [7] - Range provides financial planning services for high-earning households, including asset management and tax planning [8][10] Group 3: Items to Exclude from Trusts - Certain assets, such as vehicles, annuities, life insurance, international assets, and checking accounts, are recommended to be excluded from a revocable living trust to avoid complications [11][12][18][19] - The article advises that naming beneficiaries directly on life insurance policies is preferable to placing them in a trust [14][15]

Core Points - Understanding financial rights after a loved one's death can alleviate uncertainty and ensure proper handling of their affairs [1] - The distribution of assets depends on the presence of a will, with probate being the court-supervised process for those with a will [2][3] - Debts are settled from the estate before heirs receive any inheritance, with personal liability only passing in rare cases [3] - Surviving spouses and minor children often have additional protections under state laws, ensuring a minimum level of inheritance [4][5] - Certain assets can bypass probate and go directly to beneficiaries, including insurance policies and joint tenancy properties [6] - Collecting necessary documents is crucial for a smooth transition of assets after a death [7][9] - Planning ahead with a will and clear communication can ease the burden on loved ones during a difficult time [10][11] - The decline in the number of Americans with a will highlights the need for better estate planning [11] - Simplifying financial affairs can facilitate the transition for executors or trustees [12]