There are many types of trusts, but I want to speak to one particular type of trust.  That of the REVOCABLE LIVING TRUST.  There are some people that disagree with me on this, but I feel like this particular instrument is one of necessity in your plan.  It should be a goal of each of ours to get to a place where we can have a trust implemented.  This is assuming you have enough in assets to want to pass something on to beneficiaries.  Things like real estate, bank accounts, investment accounts, and the like.

But I don’t have enough money for a trust- this is the first of the excuses I hear when I recommend a trust.  To be frank, those with lower amounts of money (who knows what that means) need to have a trust simply because they’re not going to have the money to come up with court costs, probate fees, lawyer fees and the like.  Granted, you can have things like you IRA’s and life insurance properly designated to beneficiaries, but what about real estate, savings accounts and brokerage accounts.  Amongst all the costs that could be incurred, a $500-$1500 charge to get a trust in place is a small investment.

What a trust “buys” you- a trust allows you to bypass probate first off.  Probate is the headache and costly process of putting your property, upon death, up for grabs to any supposed creditors.  Trusts provide a nice safety net that way.  Guardianship is another concern.  Assets that have trusts as beneficiaries allow minors to not have to wait for a court to set up guardianship before the life insurance pays out.  Or if the beneficiary dies along with you, like in a car crash for example, the proceeds go to the estate and then have to work through the probate process.  Guardianship fees can cost $1000’s.  Incapacity is one other area where trusts are very helpful.  Trusts allow you a very robust platform for you to dictate what happens in the event you are incapacitated. 

Wills vs. Trusts- Typically we recommend considering a will along with the trust, but so you can distinguish between the two…  A will is public, through the probate process; a revocable living trust is generally private.  Wills don’t define an estate, they only dictate where assets should go if no other creditors lay claim to them first.  Wills instruct how to pay the taxes and debts, which should manage property, name guardians for children, etc.  So in short, you should consider having both a will and a trust.

In summary, a well-drafted trust, by a competent attorney, is an extremely valuable asset that can save you and your beneficiaries in both money and headache.  

About this Author: Ed Kinsey has been in the financial services industry since 2003. He has experience in Real Estate, Mortgages, Commercial Finance, Annuities, and Life and Health Insurance.  His goal is to benefit the lives of one million people. He want companies to start providing better benefits at lower costs through our services. He wants to enlighten people to the retirement benefits available through life insurance, the only tax free retirement option. We have secure solutions.  Ed is also a world ranked powerlifter and fitness enthusiast.

 Here are some reasons why it is important to have an annual consultation with your financial and insurance advisor(s): 




1-The landscape of what is available in the insurance and financial industries is constantly changing and evolving.  It is important that you are aware of the cutting edge products in the industry that could be a significant upgrade from what you have and save you in premium dollars.  You may have an older product that is underperforming severely compared to other potential options, but you leave it simply because you are unaware of other options!  It is your advisors responsibility to make you aware of the best options for you on a continual basis!




2-A consultation goes a long way in keeping you informed and educated in your knowledge of how your policies work and why they are important now and in the future.  This gives you great peace of mind in understanding how you are protected and what your retirement will look like!  Most of us need a refresher every now and again so that we at least have a basic understanding of the concepts of how things work.  For example, I am not an expert on mortgages and how they work (because I don’t do mortgages for a living), but gain great peace of mind just by understanding the basics of how my mortgage is set up.  However, a lot of what I have learned recently may become very foggy in the months to come, and I will likely need a refresher on my mortgage after a while also!




3-You need to know that your advisor is still heavily involved in the business and therefore up to speed with all the current best products in the industry.  Many advisors are semi-retired or lower their activity level in the business after a time, and consequently are not up to speed on the new products available in the industry that may be a better fit for their clients.  It is very easy for advisors to fall behind if they are not careful!

What is it?

A pre-need plan is a dedicated funeral fund used to pay the predetermined expenses of a funeral, cremation or burial. Many people have chosen to make funeral or cremation arrangements prior to their death due to costs. These arrangements are commonly referred to as funeral preplanning, prearranging, pre-need, or a dedicated funeral fund.

Funeral preplanning can offer peace of mind - knowing that your wishes will be respected and that the family has fewer burdens during a time of grief.

Others find that by pre-funding their funeral and burial expenses, any additional life insurance they already have purchased may be used for its original purpose and not for funeral expenses.

Why should I get it or think about getting it?

No one likes to think about death, let alone plan for it. In many families, discussing one's mortality is an extremely uncomfortable topic. But it is a topic that should be discussed and planned for well in advance of your death.

By pre-planning your funeral, you relieve your family of having to make important financial decisions during a period of great stress and grief-a time when people aren't thinking very clearly and may not know what to do because you never made your wishes known.

It's easy to say, "Don't make a fuss. I don't want a ceremony. Just bury me and be done with it." But it is important to realize that the ritual of a funeral and/or memorial service isn't for the deceased but for the living. It is a time when friends and family can gather together to grieve openly and to provide support for one another.

Pre-planning your funeral can be very informal, and as simple as following a pre-planning checklist (Below) and sharing your wishes with a family member. More Formal arrangements in the form of a preneed contract can be set up with a funeral director and pre-funded through life insurance, bank trust agreement, or another method.

Pre-planning, when done properly, can give you peace of mind because you know that your arrangements are ready and pre-funded.