Suze Orman explains why savvy families are secretly drafting ‘living trusts’ to protect wealth from greedy probate courts

According to Trust & Will, the total time from the start of the process to probate court clearance for your estate can be more than two years. That’s two years in which your family can’t access what you left them. That’s why financial expert Suze Orman suggests getting your financial house in order now.

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In just 30 minutes, you can establish a will, revocable trust, financial power of attorney, and advance directive. Along with a durable power of attorney for health care, you will have the systems in place to ensure that your financial and health care decisions are respected and that your family is protected.

That’s a lot of peace of mind in a short amount of time, but according to the latest Gallup poll findings, only 46% of American adults have a will. And only a small percentage of end-of-life plans include trust funds.

The Gallup poll also shows that higher-income Americans are more likely to have a will than lower-income Americans. There is a significant difference based on education and race, with college graduates and white Americans being more likely than non-college graduates and non-white Americans to have a will.

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Regardless of your education or race, you can take steps today to protect your wealth for your children, whether it’s your house, $1,000, or millions. Here are the documents you need and why you need them:

1. A trust It’s a necessity, even if you don’t consider yourself rich. This keeps you 100% in control. You can set up a revocable trust to always make changes later. The trust ensures that your assets are transferred to your heirs in the most seamless way possible.

1. A will ensures that all of your assets are transferred into your trust. This helps you avoid the time-consuming and often expensive probate process, saving more for your family. In your will, you will also name a guardian for your minor children.

1. A financial power of attorney appoints someone you trust to step in and help manage your finances if necessary. This can happen if you are sick or simply don’t want to deal with financial management in the future. You can grant a financial power of attorney to anyone you trust, such as an adult child or grandchild.

1. An advance directive explains your medical wishes. Suppose you cannot express what you want. In this case, your advance directive is a legal document that covers your beliefs or requests, such as whether you want to be placed on life support so that your medical team can respect your wishes, even if you are not in a position to advocate for yourself. .

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1. A Durable Power of Attorney for Health Care it is a document that appoints someone to speak and defend you. This person becomes your official healthcare representative to interact with doctors or medical staff and authorizes appropriate care when you cannot be consulted directly.

So, remember to authenticate the documents if necessary. While this may seem complicated, several online resources provide templates for organizing these documents. Benzinga can help you make a will and a trust and stay updated about Latest Estate Planning Advice.

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This article Suze Orman explains why savvy families are secretly drafting ‘living trusts’ to protect wealth from greedy probate courts originally appeared in Benzinga.com

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