In this two‑minute tax and legal tip, Mark J. Kohler explains why probate can be a costly, time‑consuming nightmare for families dealing with a loved one’s death, and why a simple will does not prevent it. He outlines how probate works—court‑supervised distribution of assets—and notes that state rules vary widely, affecting cost and speed. Kohler’s core recommendation is to establish a revocable living (family) trust that holds business interests, real estate, life‑insurance proceeds, investment accounts, IRAs, and 401(k)s. With the proper provisions, assets flow directly to the trust upon death, allowing the trustee to distribute them without court involvement, saving families significant money and emotional stress. He urges viewers, especially those with minor children, businesses, or real estate, to consult an advisor and set up a trust, and then directs them to his website, newsletter, radio show, and other educational resources.
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Hi, my name is Mark Kohler with another two minute tax and legal tip. Let's talk about probate. Now, probate can be a disaster for the family of a deceased loved one. It can take a lot of time, money, effort and additional heartache dealing with the assets of a deceased person with their business, home, additional real estate. It can really be a nightmare when a family really wants to move on and grieve. So let's talk about some of the ways you can avoid probate and save your family a lot of time and money and heartache. First, let's talk about what probate is. Probate is essentially the function of a judge going over your assets and distributing them, the transactions necessary to distribute them to your loved ones or heirs, whoever they may be. Now, you could have a Wonderful will notarized three times with 10 witnesses and golden silver doesn't matter. Will is not going to avoid probate. A will is just going to say who gets what, where and and maybe how. But the judge is going to have to verify that. That's the process of probate. So keep in mind also that in different states the rules can vary dramatically. Some states it can be very expensive and time consuming and other states it can be very fast, efficient. And a will may just be able to fly right through a probate process. So know what the rules are in your state and how urgent this planning situation should be. Now, the best way to avoid probate is to use a family trust, whether you're single or married, establishing a revocable living trust that owns your business, owns your assets, owns your home, and can be the beneficiary of your life insurance, investment accounts, even IRAs and 401ks. With the right provisions, all those assets can funnel down into your trust. Upon your passing, the trustee takes over, distributes them the way they're supposed to be distributed, and there's no need for court involvement. It can save your family so much money by spending a few dollars up front and avoiding 10 times that on the back end. So for those of you that have minor children, children that act like minors, a business or real estate, please consider getting a revocable living trust and putting that entire probate issue behind you. Talk to your advisor and keep living that American dream. If you thought that information was amazing and helpful, I have so much more to share with you. Please look at the links below and head to my website, marcjkohler.com you can subscribe to my weekly newsletter. Check out my weekly radio show. I have my online videos for tax and legal strategies that will save you thousands. Ways to learn QuickBooks with my fun videos online and also if you enjoyed it, please leave a comment and give it a like and follow me on YouTube. I promise that these videos will change your life. Thanks so much.
