How does a living trust avoid probate?
A. Property you transfer into a living trust before your death doesn’t go through probate. The successor trustee–the person you appointed to handle the trust after your death–simply transfers ownership to the beneficiaries you named in the trust. In many cases, the whole process takes only a few weeks, and there are no lawyer or court fees to pay. When the property has all been transferred to the beneficiaries, the living trust ceases to exist.
With a Living Trust you transfer all of your property from your individual name to the name of your trust, which you control such as from “Joe & Jane Smith, husband and wife” to “FirsTrust Financial Services, Inc.”, Trustee for the Joe & Jane Smith Living Trust. Legally you no longer own anything (everything now belongs to your trust), so there is nothing to probate at your demise. While the concept is simple, this is what keeps your assets out of probate court.
When you set up a living trust, you transfer assets from your name to the name of your trust, which you control — such as from “Bob and Sue Smith, husband and wife” to “Bob and Sue Smith, trustees under trust dated (date of trust).” Legally you no longer own anything (don’t panic: everything now belongs to your trust), so there is nothing for the courts to control when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts.
Property you transfer into a living trust before your death doesn’t go through probate. The successor trustee–the person you appointed to handle the trust after your death–simply transfers ownership to the beneficiaries you named in the trust. In many cases, the whole process takes only a few weeks, and there are no lawyer or court fees to pay. When the property has all been transferred to the beneficiaries, the living trust ceases to exist.
When you set up a living trust, you transfer all of your property from your individual name to the name of your trust, which you control-such as from “John and Mary Smith, husband and wife” to “John and Mary Smith, Trustees Under Trust Dated 1/1/02.” Legally you no longer own anything (everything now belongs to your trust), so there is nothing to probate when you die or if you become disabled. The concept is very simple, but this is what keeps you and your family out of probate court. You still have control over all of your assets.
