Does a Living Trust Avoid Probate?

How Living Trusts Affect Probate

One of the main reasons people create a living trust is to simplify the transfer of assets after death. But does a trust completely avoid probate? The answer depends on the type of trust and how assets are titled.

Living Trusts

A living trust allows you to retain control over your assets during your lifetime. Because the trust owns the assets but you can still manage them:

• Assets in the trust generally bypass probate.
• Your loved ones may access assets more quickly after your death.
• The trust helps maintain privacy, as probate records are public.

Living trusts are commonly used for probate avoidance, but proper funding of the trust is essential.

Irrevocable Trusts

Irrevocable trusts are different. Once assets are placed in the trust, you give up control:

• Assets in an irrevocable trust are also typically not subject to probate.
• They may provide additional benefits, such as asset protection and potential tax advantages.

However, because you cannot easily change the trust, careful planning is required.

Properly Funding Your Trust

Simply creating a trust does not automatically avoid probate. You must transfer ownership of your assets into the trust:

• Real estate, bank accounts, and investments need to be retitled in the trust’s name.
• Failure to fund the trust properly may result in assets still going through probate.

Other Considerations

While a living trust can avoid probate, it does not replace the need for other estate planning documents:

• Wills may still be needed for assets not in the trust.
• Durable powers of attorney and healthcare directives remain important.

Conclusion

A properly funded living trust can help your estate avoid probate, speeding up asset transfer and maintaining privacy. Living trusts are the most common, while irrevocable trusts offer additional benefits with less flexibility. Working with an experienced attorney ensures your trust is set up and funded correctly for maximum effectiveness.