If you pass away without a last will (known as dying "intestate"), the state or government decides what happens to your property and your dependent children.

Probate is the legal process through which the court oversees how an estate will be distributed. If you signed a last will, your estate passes to the beneficiaries named. If not, your estate passes to relatives based on state law. Generally, a formal probate action is required if an estate includes real property. But in many states, probate isn't required and other legal remedies are available if the estate is of minimal value.

It's a legal document that states who you want to manage and distribute your property if you're unable to do so, and who receives it when you pass away. Once signed, you transfer ownership of your assets into the trust and you remain in complete control of your property. The trust property can be managed and distributed without going through the probate court.

Though they sound similar, a last will and a living will are two very different things that serve different needs. A last will details what you want to happen to your property after your death. A living will, sometimes called an advance directive, lays out the medical care you wish to receive under certain circumstances if you become incapacitated or unable to communicate.

The laws regarding what happens to your property after your death can be very complex and vary widely. In some insintances, the probate process is relatively simple, and a last will is sufficient for many people's needs. But in other cases, the probate process can be expensive and time consuming, which makes a living trust an appealing option, depending upon the size of your estate.