What Is Final Expense Insurance and Do You Need It?

lady bird deed
Are You Concerned About Your Estate Becoming Public Record?
Many people are surprised to learn that when an estate goes through probate, much of the information filed with the court can become part of the public record. Depending on the state and the circumstances, that can include information about assets, beneficiaries, debts, and how property is distributed.

A properly created and properly funded revocable living trust can be an effective way to avoid probate for assets that have been transferred into the trust. Instead of waiting for a probate court to oversee the transfer, a successor trustee can generally manage and distribute trust assets according to the instructions you created.

That can mean:

Less court involvement
Greater privacy
A more efficient transfer of assets
Clear instructions for beneficiaries
Someone you choose can manage trust assets if you become incapacitated
Greater control over when and how beneficiaries receive property
The key is that the trust must be properly funded. Simply signing a trust document does not automatically place your home, bank accounts, or other assets into the trust.

Revocable Trust vs. Lady Bird Deed
A Lady Bird deed, also called an enhanced life estate deed, can also be used in certain states to transfer real estate outside of probate. However, it is a much more limited estate-planning tool than a revocable trust.

Revocable Living Trust Lady Bird Deed
Can hold real estate and many other types of assets Generally applies only to a specific piece of real estate
Can help avoid probate for assets properly titled in the trust Can allow the specific property named in the deed to pass outside probate
Can provide instructions for managing assets during incapacity Primarily addresses what happens to the real estate at death
Can control how and when beneficiaries receive property Usually transfers the property directly to the named beneficiary at death
Can address multiple beneficiaries and more complex family situations Typically much simpler and more limited
Trust terms generally remain private The deed itself is recorded in the public land records
Available as an estate-planning structure nationwide, subject to state law Lady Bird deeds are recognized or commonly used only in certain states
Why Would Someone Choose a Lady Bird Deed?
For someone whose primary concern is keeping one piece of real estate out of probate, a Lady Bird deed may be a relatively simple option where state law permits it.

The owner generally keeps control of the property during life and can usually sell, mortgage, or otherwise deal with the property without obtaining permission from the future beneficiary. At death, the property can transfer to the named beneficiary without going through probate.

However, a Lady Bird deed does not create a complete estate plan. It does not provide the same ability to manage bank accounts, investments, personal property, or other assets, and it does not provide the same level of planning for incapacity or ongoing beneficiary management that a trust can provide.

Why Consider a Revocable Trust?
A revocable living trust can be much more comprehensive.

Rather than addressing only what happens to a house, a trust can become the framework for managing and transferring many of your assets. It can also provide detailed instructions about what happens if you become unable to manage your affairs and what happens to your property after your death.

For families who value privacy, probate avoidance, control, and simplicity for their beneficiaries, a properly designed and funded trust can be an excellent estate-planning tool.

The question isn't simply, “Do I need a trust?”
The better question is, “What do I want to happen to my property, and what is the best way to make that happen?”

Education first. No pressure. Just options.