1. Living Trust: A living trust, also known as a revocable trust or inter vivos trust, is a legal arrangement where assets are placed into a trust during the lifetime of the individual who creates it (the grantor). The grantor typically manages the assets in the trust as the trustee until their death or incapacity, at which point a successor trustee takes over. Living trusts are commonly used for estate planning purposes to manage assets during one’s lifetime and facilitate the distribution of assets after death, often bypassing the probate process.
2. Real Estate: Real estate refers to land and any permanent improvements attached to it, such as buildings, houses, and natural resources like minerals, water, and crops. Real estate is a significant component of many individuals’ investment portfolios and can be bought, sold, or leased for various purposes including residential, commercial, industrial, or agricultural use.
3. Joint Tenancy with Right of Survivorship (JTWROS): Joint tenancy with right of survivorship is a form of property ownership where two or more individuals jointly own property, and upon the death of one owner, the ownership interest of the deceased owner automatically transfers to the surviving owner(s) without the need for probate. This means that when one owner dies, their share of the property is equally distributed among the surviving owners, rather than being passed on according to the deceased owner’s will or state inheritance laws.
4. Pay on Death (POD) Beneficiary: Pay on death beneficiary designation is a legal arrangement that allows an individual to designate who will receive certain assets upon their death without the need for probate. POD beneficiaries can be named for various types of assets, such as bank accounts, retirement accounts, and investment accounts. When the account holder dies, the assets held in the account automatically transfer to the designated POD beneficiaries, bypassing the probate process and allowing for a smoother transfer of assets to the intended recipients.
