Can a Trust Attorney Help You Avoid Probate?
A trust attorney can also assist in helping you and your family establish an estate plan that can potentially avoid or reduce probate for certain items. Probate can be a lengthy, expensive, and public process and although necessary, it can be streamlined for your loved ones with the right legal planning.
A trust attorney will assist you in deciding if a trust and other estate planning techniques fit your family‘s needs and budget.
What Is Probate?
Probate courts oversee the administration of a person‘s estate. This involves proving a will, appointing an executor when appropriate, paying debts, and distributing property to beneficiaries.
Depending on the state‘s law and the amount of the estate and whether the heirs or creditors dispute, probate may take just a few weeks or several months.
While probate undoubtedly has an important legal function, many people would rather cut down on the amount of property that needs to go through probate.
What Does a Trust Attorney Do?
What is a trust attorney? A trust attorney is a lawyer who helps people draft, update, and administer trusts as part of an estate plan.
Their services often include:
- Describing various kinds of trusts
- Preparing trust documents Trust document preparation
- , of course, the best way to see where an estate plan can be improved is through a review of what would have happened under previous plans, but worse than that, it is interesting to review recent estate plans to see what trends are evident.
- Dealing with the interaction of trusts and wills and designations of beneficiaries
- Providing guidance to trustees regarding their duties
- Post-major life event updates to trusts
- Assisting clients in properly keeping documents and other assets
Once your estate and financial situation are understood, a trust attorney can advise on what legal avenues are available, offering suggestions on how to make a transfer of assets as straightforward as possible.
How Can a Trust Help Avoid Probate?
A significant reasons why so many people set up a trust is because unlike assets not held in a trust, those assets that are so held will normally not go through the process of probate on the death of the grantor.
Alternatively, the successor trustee adheres to the directions of the trust arrangement and disburses assets directly to the beneficiaries as the document stipulates.
This process can provide several advantages, including:
- Quicker distribution of assets
- Greater privacy
- Less judicial intervention
- Simplified administration
- Provides more continuity if Grantor becomes disabled.
It is not clear in some cases as to whether or not probate would need to be applied for, as it really comes down to how the trust is set-up, funded and administered.
Which Assets May Avoid Probate?
A trust lawyer also assists in locating items that could be taken out of probate.
These often include:
- Trust-held real estate
- All bank account(s); The trust owns.
- Within the Trust, there is an investment account that was transferred.
- Some business interests;
- The following (22) Personal Property to be transferred into the trust.
The situation is similar with other assets, like those held with the benefit of a life insurance policy or jointly owned property.
Benefits of Working With a Trust Attorney
There are several benefits to receiving professional legal advice and planning an estate plan.
Personalized Estate Planning
The number of financial goals for each family.
A trust lawyer can formulate a tailored plan according to your assets, family makeup, business interests and future plans.
Proper Trust Funding
It‘s not just about…setting up a trust.
An attorney will assist in the proper placement of eligible assets into the trust to be managed under the terms of the trust. This process is very important as any assets kept outside of the trust could be subject to probate.
Keeping Documents Updated
Major life events can change your estate plan.
Your trust should be reviewed after:
- Marriage
- Divorce
- The birth/adoptio n of a child
- Buy a large asset
- Beg and selling a business
- Inheritance; receiving an inheritance.
- Relocating to a different state
Regular reviews will help ensure that your trust continues to do what you want it to do.
Coordinating Your Entire Estate Plan
A trust works best when coordinated with other estate planning documents, including:
- Wills
- Authorizations to act on your behalf
- Healthcare directives
- Beneficiary designations
A trust attorney makes sure that these documents work together as part of an overall estate plan.
Who Should Consider Creating a Trust?
A trust may benefit many individuals, including:
- Families with little children
- Business owners
- Real estate investors;
- People with large savings
- Retirees
- Blended families
- Individuals that value privacy
- For others who have an interest in order to make the transfer of assets easier
Your trust lawyer will assess your situation and advise if a trust is right for you.
Common Misconceptions About Probate
There are a number of myths relating to probate and trusts.
Some people believe:
- Trust is only for the rich.
- Having any kind of a will in an important issue, because it inherently excludes the need of a probate.
- Trust cannot be altered.
- Probate is lengthy and expensive.
- This should only be needed in later life.
In fact, trusts can help individuals with all sorts of financial circumstances and estate planning can be most effective when starting early.
When Should You Speak With a Trust Attorney?
The optimal time to consult an attorney with regard to a trust is before life changes or financial adjustments create unwarranted complications.
You should consider scheduling a consultation if you are:
- “Buying a house”
- Having a family in the future
- Growing a business
- Retirement planning
- Inheriting an estate
- Update your estate plan
- Presumably worried about future probate problems
Early planning will give you greater choices and can help make sure that your estate plan is up-to-date with your current objectives.
Conclusion
A trust can be a valuable way to hold assets and accomplish estate planning goals including reducing probate property. No two estates are alike and professional assistance from a trusting estate planning attorney can be invaluable to help you establish a trust that is executed correctly and effectively funded to work seamlessly within your estate plan. Paired with careful planning to protect your asset protection planning, a trust can help you maintain your wealth and secure your family.
Frequently Asked Questions
1. Can a trust completely avoid probate?
A duly created trust, funded correctly, could allow the majority of the assets contained in the trust to pass outside of the probate estate. Assets not transferred into the trust or where special provisions apply, including those controlled by other laws, will potentially have to go through probate.
2. What does a trust attorney do?
A trust attorney aids in drafting, revising, and reviewing trusts, offers estate planning advice, and makes certain legal papers are drafted in compliance with the law.
3. Is a trust better than a will?
A trust and a will have different functions. Often it is advisable to have both if you wish to do a full estate plan.
4. When should I create a trust?
It‘s advisable to set up a trust before any major life events or large financial changes, so there‘s time to get the right structure in place and properly fund the trust.
5. How does asset protection planning work with a trust?
Asset protection planning, which is often part of trust planning, uses legal strategies to shield assets, structure assets, and achieve estate planning objectives, with an eye toward preserving wealth for future generations.