Probate is the legal process of distributing a person’s assets after their death. While probate can be a necessary step to ensure a person’s assets are properly distributed, it can also be a time-consuming and costly process. This is why many people choose to use a revocable living trust as a probate avoidance strategy.
As an estate attorney, I often recommend revocable living trusts to my clients who want to avoid probate. In this blog post, I will explain why a revocable living trust is a good strategy for probate avoidance and how it can benefit you and your loved ones.
What is a Revocable Living Trust?
A revocable living trust is a legal arrangement in which a person (the grantor) transfers their assets into a trust during their lifetime. The grantor retains control of the assets while they are alive and can make changes to the trust at any time. After the grantor’s death, the assets in the trust are distributed to the beneficiaries according to the terms of the trust document.
Why is a Revocable Living Trust a Good Strategy for Probate Avoidance?
There are several reasons why a revocable living trust is a good strategy for probate avoidance. When a person dies with assets in their name alone, those assets must go through probate. This involves filing a petition with the probate court, notifying creditors, heirs and beneficiaries, and distributing assets according to the will or state law. This process can be time-consuming, expensive, and public. A revocable living trust can avoid probate by transferring assets into the trust, where they are managed and distributed by a trustee without court involvement.
Privacy: Probate proceedings are public record, which means that anyone can access information about the deceased person’s assets and beneficiaries. This can be problematic for people who value their privacy or have complex family dynamics. A revocable living trust is a private document, which means that only the grantor, trustee, and beneficiaries have access to the trust’s terms and assets.
Control: A revocable living trust allows the grantor to retain control of their assets during their lifetime. The grantor can change the terms of the trust, add or remove assets, and name new beneficiaries as needed. This flexibility is particularly useful for people with complex financial situations or changing family dynamics.
Flexibility: A revocable living trust can be designed to meet the unique needs of each grantor. For example, a trust can be set up to provide for a disabled child, protect assets from creditors or lawsuits, or minimize estate taxes. This flexibility can help ensure that a person’s assets are distributed according to their wishes, rather than being subject to state law or the probate court’s discretion.
Faster Distribution: Probate can take several months or even years to complete, depending on the complexity of the estate and the court’s schedule. A revocable living trust can distribute assets much more quickly, often within a few weeks or months after the grantor’s death. This can provide much-needed financial support to beneficiaries and avoid the hassle and expense of probate.
A revocable living trust is an excellent strategy for probate avoidance as it allows the grantor to retain control of their assets, avoid probate court, maintain privacy, and provide for their loved ones according to their wishes. If you are considering using a revocable living trust as part of your estate plan, I encourage you to speak with an experienced estate attorney who can help you design a trust that meets your unique needs and goals.
