Probate can be succinctly defined as the legal process of estate administration. It can enter the picture when property is being transferred, but it can be avoided.
Why would you want to avoid probate? The process can be expensive, it is time-consuming, and it is a public proceeding that allows anyone who is interested to find out how you planned your estate.
There are various different ways assets can be transferred outside of probate. The best course of action will vary depending on the specific circumstances in question.
In this blog post, we will look at the value of revocable living trusts for probate avoidance, but there are other possibilities. You can consult with an estate planning attorney to explore all of your options.
Efficient Asset Transfers
Some people harbor misconceptions about trusts. They think that you lose all control of resources that you convey into a trust. In fact, this is not the case when it comes to revocable living trusts.
The person who creates a trust is called the grantor of the trust. A trustee will administer the trust, and a beneficiary can receive asset distributions from the trust.
The grantor of the trust names a trustee, and the beneficiary or beneficiaries are also listed. With a revocable living trust, the grantor will typically act as the trustee and the beneficiary initially, so the grantor retains control of the actions of the trust throughout his or her life.
Because the trust is revocable, the grantor has the power to revoke or dissolve the trust entirely, so there is no risk.
When the trust declaration is being created by the grantor, a successor trustee is named to administer the trust after the death of the grantor, and successor beneficiaries will also be named. The grantor can leave behind specific instructions regarding asset distributions in the trust declaration.
After the passing of the grantor, the successor trustee will administer the trust and follow these instructions. Assets will be distributed in accordance with the wishes of the grantor, and these distributions would not be subject to the process of probate.
Free Probate Report
We have devoted considerable resources to the preparation of a series of special reports. These reports cover various different estate planning and elder law topics.
If you would like to learn more about the probate process, download our special report on the subject. The report is being offered to our readers on a complimentary basis, and you can visit this page to access your copy: Probate Report.
Schedule a Consultation
If you are ready to take action for the benefit of your loved ones, get in touch with us through our contact page to set up a free consultation: Los Angeles CA Estate Planning Attorneys.
- How to Leave Assets for Your Minor Children in Your Estate Plan - July 21, 2021
- Can a Beneficiary Sell His/Her Interest in a Trust? - July 19, 2021
- 5 Things to Consider When Creating Your Estate Plan - July 16, 2021
