When properly “funded”, yes, one of the primary benefits of creating a trust is that it can help to avoid the Court’s probate process.

Probate is the legal process through which a deceased person’s assets are distributed and their final affairs are settled through a Court proceeding. It can be a time-consuming and costly process.

However, when assets are held in a trust, they are legally owned by the trust itself, not the individual who created the trust (the grantor). As a result, upon the grantor’s death, those assets do not need to go through probate because they are already owned by the trust. Instead, the successor trustee named in the trust document can take over the management and distribution of the assets according to the terms of the trust.

By avoiding probate, a trust can provide several advantages, including:

1. Privacy: Probate proceedings are generally public, while the administration of a trust can remain private, keeping details of the assets and beneficiaries confidential.
2. Time and cost savings: Probate can be a lengthy process, often taking several months or even years to complete. It can also involve various court fees and attorney expenses. By bypassing probate, a trust can save time and potentially reduce costs associated with the administration of the estate.
3. Avoidance of multi-state probate: If you own property in multiple states, having a trust can help avoid the need for probate in each state where you hold assets. The trust can hold and distribute assets across state lines without the need for separate probate proceedings.

It’s important to note that not all assets need to be placed in a trust to avoid probate. This is commonly referred to as trust “funding”.  Typically, assets that are directly transferred upon death, such as life insurance proceeds or retirement accounts with named beneficiaries, can pass outside of probate. However, assets like real estate, bank accounts, or investments may need to be titled in the name of the trust to avoid probate.

If you have a trust, it is vital to consult with an estate planning attorney who can provide you with specific guidance on how to structure your trust and title your assets to maximize the probate avoidance benefits based on your individual circumstances and applicable laws.

In Arizona? Call us today at 480-922-1010 or email info@bivenslaw.com to schedule your estate planning consultation. Whether you already have a trust or want to see if a trust is right for you, we can help you with customized strategies to achieve the best overall estate plan to avoid probate and protect your family.

-Stephanie A. Bivens, Esq. CELA