How to Avoid Probate with a Living Trust

Steps to Avoid Probate with a Living Trust

Many people create a living trust to help their estate avoid probate. While a trust can be effective, it must be set up and funded correctly to work as intended.

Creating the Trust

The first step is to establish a living trust:

• Work with an experienced estate planning attorney to draft the trust.
• Designate yourself as the trustee so you retain control during your lifetime.
• Name a successor trustee who will manage and distribute the assets after your death.

Funding the Trust

Creating the trust alone does not avoid probate. You must transfer ownership of your assets into the trust:

• Retitle bank accounts, investment accounts, and real estate in the name of the trust.
• Update beneficiary designations where appropriate.
• Ensure all personal property intended for the trust is properly documented.

Maintaining the Trust

After funding, you need to maintain the trust:

• Update the trust as you acquire or sell assets.
• Make changes to beneficiaries or successor trustees as needed.
• Review the trust periodically with your attorney to ensure it aligns with current laws and your wishes.

Benefits of Avoiding Probate

Using a living trust to avoid probate can offer several advantages:

• Faster access to assets for your heirs.
• Reduced legal costs and court involvement.
• Maintains privacy, as probate proceedings are public.

Conclusion

By properly creating, funding, and maintaining a living trust, you can help your estate avoid probate and provide a smoother, more private transfer of assets to your loved ones. Consulting an estate planning attorney ensures your trust is effective and compliant with current laws.