How Does a Trust Allow Beneficiaries to Avoid Probate?
If you are starting to think about creating an estate plan, it is important to consider creating a trust to allow your beneficiaries to receive assets without those assets having to go through the probate process. Probate is the process, generally, of proving that the deceased’s will is valid, and during which the executor of the estate will identify all assets of the deceased, pay debts and taxes associated with the deceased’s estate, and eventually distribute assets to beneficiaries named in the deceased’s will. As you might imagine, probate can take quite a long time.
According to data from the American Bar Association (ABA), the average estate will complete the probate process in a time period of six to nine months. While some estates will complete probate more quickly, there are also many that will take significantly longer. The length of the probate process usually depends on the size and complexity of the estate. While probate may still be necessary for certain aspects of your estate, you may be able to ensure that your beneficiaries receive assets much sooner and with fewer complications. How does a trust allow beneficiaries to avoid probate? And are there any drawbacks for you? Consider the from our Gwinnett County estate planning lawyers.
Assets in a Trust Do Not Go Through Probate
How will creating a trust allow your beneficiaries to avoid probate? In short, no assets held in a trust have to go through the probate process. It is one of the major reasons that people decide to establish trusts in order to leave assets to loved ones.
While no assets held in a trust must be probated, it is important to know that different types of trusts have different purposes in addition to allowing the assets to pass without being probated. For example, a spendthrift trust can also allow you to control how a beneficiary receives assets (to prevent those assets from being taken by creditors or spent all at once). Or, for instance, a special needs trust (SNT) can allow you to financially assist a disabled adult child without affecting their eligibility for public benefits.
Benefits and Limitations: Leaving Assets through a Trust
If you make it easier for your beneficiaries to receive your assets by establishing a trust, you may be wondering what the potential limitations or drawbacks might be for you. If you create a revocable trust in Georgia, there are no notable drawbacks that will limit your ability to manage your own assets up until your death. With a revocable living trust, you can make changes or even decide to cancel the trust.
Irrevocable trusts are different, however. If you create an irrevocable trust (and some types of trusts must be established as irrevocable trusts, such as SNTs), then you lose control over the assets once they are placed in the trust. You will not be able to amend the terms or cancel the trust for any reason.
Contact a Norcross Estate Planning Lawyer for Assistance Creating a Trust
Do you want to find out more about establishing a trust? In addition to providing beneficiaries with assets that do not have to go through probate, trusts can have many other benefits, as well. An experienced Norcross estate planning attorney at Bowman Law Firm can discuss the benefits of different types of trusts based on your needs and your family’s needs. Once you are ready to begin the process of creating a trust or creating any other components of your estate plan, our firm is here to help. Contact us today for more information about how we assist clients with a wide range of estate planning matters in Georgia.
Source:
law.justia.com/codes/georgia/title-53/
