Sunday, August 10, 2008

Vanguard's estate planning terms you need to know

Vanguard's site is a great source of financial information. They recently had a story on the 5 estate planning terms you need to know.

Living trust

A living trust is established while you are alive. At your death, any assets in the living trust do not have to go through probate, but pass as you've stated in your trust document.

Common misconception: A trust's primary purpose is to reduce taxes.

"People mistakenly think this, but the trust's most important role is to control your assets," says Ms. Smith.

The story also links to their estate planning brochure.