What is a Revocable (“Living”) Trust and how does it avoid probate?
You must be very cautious when utilizing a trust. Placing real property in a trust may exclude you from the rules of homestead exemption. Certain assets should not be transferred to a trust because income tax problems may result. Although you can avoid “probate” expenses there are “trust” expenses. Further, establishing a trust generally costs more up-front and you must be certain that the trust is properly funded. A Revocable (“Living”) Trust is a document created by you to provide for management of your assets during your lifetime and you can designate to whom your assets will be distributed at your death. In general, ownership of assets must be formally transferred to the trust before your death to get the probate avoidance benefit from the trust. If assets are not properly transferred to the trust, then the assets may be subject to probate. You can amend or revoke this document at any time as long as you are not incapacitated. If you are the initial trustee, then the document will
