There are many ways to distribute property after death. The three most common are:
1. WILL: Provides instructions for gathering assets, paying bills and distributing inheritances under the rules and protections of probate court. Can include a testamentary trust to provide for family members after death.
2. LIVING TRUST: This method avoids probate by transferring property out of an individual's name and into a legal entity called a trust. Many people administer their own trusts during life, but name successor trustees to step in after incapacity or death. Trusts are generally "revocable," meaning you can change the terms before death. They provide little court protection.
3. JOINT OWNERSHIP WITH RIGHTS OF SURVIVORSHIP: Also avoids probate, because property transfers to the second owner upon the death of the first. However, it can increase taxes and leave one co-owner vulnerable to the other's creditors.
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