Most people don't think about what will happen to their assets once they've passed on. Often people often rely solely upon what is written in a last will and testament to speak for them. While a last will is good, there is no substitute for comprehensive estate planning to ensure that your wishes are actually carried out.

Take the case of an elderly woman who was survived by her four male adult sons. She left behind a will that described her intentions, but also left behind a situation that would guarantee problems with executing her final wishes.

Instead of listing herself as the sole owner of an extensive bank account valued in excess of several hundred thousand dollars, she included her oldest son as a joint tenant with survivorship rights. This meant that the oldest son became the sole owner of the account and the cash upon his mother's passing.

The woman assumed that since her sons were all close and got along with each other very well, that the oldest would divide the money equally with his brothers. By naming her oldest son as a joint tenant on her bank account, the woman may have avoided the probate court, but she unwittingly made it difficult for the eldest son to share the money with his brothers without each having to pay a sizeable gift tax.

The better plan may have been to secure the money in a living trust. In many cases, the living trust can help the estate avoid the probate court and it also allows for better control of the assets. A living trust eliminates the risk of the estate not being executed according to your final wishes.

People often don't fully understand what the living trust does, so many avoid considering it altogether. But in the interest of good estate planning, a last will and testament is often not enough.

Your attorney can discuss the benefits of creating a living trust with you at the time your will is prepared.

Source: The Examiner "High school How to Leave Money to Your Family" Matthew Crider, May 30, 2011