What Causes Probate and Conservatorships?
Generally, it is the need for a signature. Certain types of assets can be transferred only after the owner signs documents at the time the transfer or loan is made. A home is an example of this type of asset. A person is unable to sign the necessary documents after his or her death or after becoming incompetent. The solution is the court proceeding called Probate if the person has died or Conservatorship of the person is alive but legally incompetent. The court proceeding results in a court order that takes the place of the needed signature. However, in a Living Trust, signature authority is held by the Trustee of the Trust. If the original Trustee dies or becomes incompetent, there is a pre-designated Successor Trustee available to provide the needed signatures, thus avoiding the need to have a Probate or Conservatorship proceeding.
