Do Living Trusts Avoid Probate?
If you are thinking of creating a plan for your estate, you must want to give your assets and property to your children, spouses, and other beloved people. You would not want your earnings and a big chunk of your estate to go into attorney fees. This is where a living trust comes in.
If you wish to avoid probate, the best way to do so is to set up a living trust. When you create a trust, it allows the beneficiaries to receive the assets quickly, without delays, hassles, and probate. To know more about how a trust works, speak with an estate planning attorney today.
What is probate?
Probate is the process by which the assets in your estate are distributed to their respective beneficiaries. When you set up a will, court-ordered probate will carry out the process according to your wishes and the terms of the will.
An executor files a petition in court to begin the probate. After the process is authorized, the distribution of assets begins in accordance with the instructions laid out in your will. Even if you do not create a will before you pass away, a probate will still take place.
In the absence of a will, the court appoints a personal representative who assumes the role of an executor. When there is no will, that is, when there are no terms of the will, the assets are divided according to the state’s intestate succession laws.
Do living trusts avoid probate?
There are many advantages to setting up a living trust. Perhaps the most beneficial one is avoidance of probate. The assets in your will remain frozen until the probate process is completed. Therefore, your heirs won’t get access to them until the procedure is over. This could take several months to years.
The assets contained in a trust do not need to go through the probate process. Their distribution can occur right after you pass away and reach the beneficiaries way quicker than in probate.
You can avoid probate as the trust itself owns the assets contained in it. Since they are not a part of your estate, they do not need to go through probate. You do not hold the title to these assets; therefore, they are not considered a part of your estate.
Benefits of a living trust
Here are some more benefits of a living trust:
- A living trust is a private document, while a will of your assets is a public record.
- A living trust is revocable, and you can have control over them.
- You can set up special beneficiaries for minor children.