Don't Put These 5 Assets In A Living Trust
Don't Put These 5 Assets In A Living Trust. How To Help Your Kids Bypass Probate When You Die
Moneywise Mon, December 1, 2025
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 exclusive interview. (What else did you expect? We created him.) “I went through it when my father died, and my family spent the next year talking to lawyers, trying to get things squared away.”
He shares how the probate process caused tension between his siblings. He also harbored frustration over one unanswerable question: “Why didn’t Dad create a living trust? It would’ve made things so much simpler.”
Credit Pete for now following his own advice. He has set up a living trust. Now, he must decide what, if anything, to leave out of it. He has done the homework for you: Here are five things to consider as you structure your living trust.
Probate explained
Back to living trusts and the reasons they’re better than a long and drawn-out probate process.
Unfortunately, many folks don’t even know what “probate” means until they’re in the thick of it.
Sometimes, not always, when a person dies — even if they left a will — a legal process called probate ensues. Probate is required to validate the will, name an executor to administer the estate if there isn’t one, pay off liabilities, and then distribute the remaining assets to heirs.
The process can take years, requiring piles of paperwork and ongoing legal fees.
For instance, after Ozzy Osbourne passed away in July, reports began surfacing that his $220 million estate would face hefty inheritance taxes and a lengthy probate process. According to estate planning attorney Gideon Alper at Alper Law, “If Ozzy’s assets were left in trust, his family could inherit faster and privately.”
In Pete’s case, a trust could have helped his family avoid probate, protect their privacy, and minimize estate taxes when his father died. A trust is a document that allows you to keep control of your money and property and designate who receives it once you die.
Consider life insurance for added peace of mind
Before we get into living trusts, it’s worth looking at an even simpler way to help your children live more comfortably after you pass.
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