Can A Revocable Living Trust Avoid Probate?

Posted by smith clea on February 14th, 2020

The primary purpose of setting up a revocable living trust is to avoid probate. With the proper help from a trust attorney, setting up a living trust can be relatively simple. With a revocable living trust, you can be sure that your estate and your beneficiaries will not be bogged down in probate court after your death.

Also, the value and transfer of your assets and personal finances will remain private with a revocable living trust. This is different that a will. A will must go through probate court and probate is a public process. This means that your assets and the transfer of those assets becomes public.

 revocable living trust

Setting Up A Revocable Living Trust

To set up a revocable living trust, you need to write a trust document. There are 3 key parties in a trust: the trust maker (also known as grantor or settlor), the trustee; and the beneficiaries.

As the name suggests, the trust maker is the person who makes and funds the trust. The beneficiaries are the people who receive the assets in the trust. The trustee manages the trust and its property.

In a typical revocable trust, the grantor usually acts as the trustee while they are still alive. When the grantor passes away, a successor trustee they have named takes over the management of the trust. The successor trustee is also responsible for distributing the trust assets to the beneficiaries after the grantor has died.

Funding The Trust

Once the trust agreement is complete and signed, the individual who set up the trust will fund the trust. This involves transferring his/her assets into the ownership of the trust.

The grantor/trustee will then manage the assets in the trust for the duration of their lifetime. Once they die, the successor trustee will take over management and distribute the assets according to the grantor’s wishes.

Distribution Of Assets To The Trust Beneficiaries

Once the assets have been funded into the name of the trust, the trust maker will not own property in his/her name. Instead, they will be owned by the trust and managed by the grantor/trustee. This is the key feature of a revocable living trust that prevents probate.

As a result of the way a living trust and trust laws are structured, probate is not required to transfer ownership to the beneficiaries when the grantor dies.

The successor trustee named in the trust agreement will legally step in as the administrator. The successor trustee will take control of retirement accounts and annuities, pay the grantor’s outstanding taxes and debts, and distribute the remaining assets to the beneficiaries named in the trust document. 

Setup your revocable living trust and avoid probate consult Rochester law center

smith clea

About the Author

smith clea
Joined: February 6th, 2020
Articles Posted: 30

How To Improve Kidney Function | Natural Treatments to Reverse Kidney Disease Problems By Diet
Free Presentation Shows You How To Reverse Your Impaired Kidney Function, Avoid Dialysis And Begin Healing Your Kidneys
Carpal Tunnel Remedy - Carpal Tunnel Master, Self Treatment for Carpal Tunnel Syndrome
Carpal tunnel remedy, self-help techniques to reverse carpal tunnel syndrome. Avoid surgery. Safe, Easy, Effective. Show and Tell Videos. Also for False Carpal Tunnel syndromes and many other hand problems
Three Two Win
Fellow punters, you can now have free 30-day access to the Three Two Win service. We trust our selections and that’s why we show you our system in action before we ask anything of you. Six days a week you will get 3 bets per day. There will be 1 single,
Congratulations You Are A Winner
Become a sweeper and make a full time living by entering sweepstakes! Get your copy of “Congratulations, You’re a Winner” today and you will receive some of the best kept sweepstakes secrets in the world.
Paleo Desserts Cookbook
Gluten free & Paleo desserts cookbook by Living Healthy With Chocolate. There are healthy recipes for cookies, cakes, brownies, muffins, breads and more!