Use a revocable living trust if you have real estate in multiple states

Use a revocable living trust if you have real estate in multiple states or if you have multiple beneficiaries.

Attorney Tom Olsen: Chrissy, let's give another reason sometimes where we use a living trust for people and we'll lump two categories in there. Remember, we're about using simple tools like making bank accounts POD, payable on death, to somebody, to your children to avoid probate. Let's say two examples. One is if you own property, if you own real estate in other states or we meet people on a regular basis that got property in two or three other states.

That's a good reason to use a living trust because, remember folks, if you own property in other states and you pass away, not only do we have to do probate in Florida, we have to do probate in each one of those other states. That's a real whammy as far as attorney's fees and court costs are concerned. That would be a great situation to use living trust.

Attorney Chris Merrill: Exactly. Tom, that happens often, especially, here in Florida because we have a lot of people that move to Florida to retire. Therefore, it would put them in a situation where they still have a home in another state but now they are a resident of Florida. They have a home here also, but yet, they keep real estate in other places. Very common here and once again, a great reason why you would also want to have a living trust.

Attorney Tom Olsen: We've talked about three categories of when people might use living trust. One is they got minor or young children. Two is they have spendthrift or addiction issues. Three is they've got properties in other states. The properties in other states, we want to throw it into a category that's similar to it. That is if you've got multiple beneficiaries, if you've got 20 nieces and nephews and charities you want to include, you can't make an account POD for 20 nieces and nephews. That's where we get into using a living trust for you for the purpose of avoiding probate.

Attorney Chris Merrill: Exactly. Tom, that often happens when it's a situation where somebody does not have children.

Attorney Tom Olsen: All right folks, my name is Tom Olsen. The name of the show is Olsen on Law. We're going to take a break. We'll be back in just a few minutes.