Sometimes living trusts are known as —"living revocable trust" or "revocable living trusts". The key here is that they are revocable. The ability to change his or her mind and repeal the trust is the advantage of a revocable living trust. Heirs will receive a larger inheritance, avoid probate and reduce estate taxes by using living trusts. In order to prevent a probate proceeding, a trust must be correctly set up and managed.

Most people who get a living trust do not avoid probate. There is a legitimate argument in the legal community against living trusts, because so many of them fail to give the probate protection that was "sold" to the family. The dilemma is not caused by the trust. It is a problem with the attorneys and how they educate their clients. In order to avoid probate, clients need to be educated on how to "use" their living trust.

The deceased’s assets will need to be probated if the living trust does not function properly. There is no other option than going to the probate court for a prolonged legal proceeding. If the deceased had a will, then the probate court will use the will to guide the probate process. When there is no will, it becomes what is called an "intestate" proceeding. When someone dies without a will, he or she is said to be "intestate".

Living revocable trusts and pour over wills should be provided together. The probate courts can use the pour over will to direct them through the process if probate becomes necessary. If all goes well, nothing will need to be probated and the pour over will won’t be used.

Pour over wills don’t make a distribution of the property, as standard wills do. Once the property is probated, a pour over will directs the court to "pour over" all of the property into the revocable living trust, so that it can be distributed according to the terms of the living trust. In his new book, Guaranteed Millionaire, Lee R. Phillips discusses in detail revocable living trusts and pour over wills. When you order Guaranteed Millionaire, you will receive absolutely FREE the DVD, "Using the Law to Make Money and Protect Your Assets". You will get $5 off when you order by the end of the month.