If you have ever been through a probate procedure before, you may already understand the hassle and expense that comes with this lengthy process. Did you know that you can take measures to help your family avoid probate when settling your estate? A Revocable Living Trust is a common tool for evading probate.

What It Is

A Revocable Living Trust is an estate planning device that lets you easily pass your belongings to your loved ones in the event of your death. To create your Trust, you must first write a trust agreement. As the trust maker, you will name a trustee and beneficiary. Your first trustee will be you, since you will want to control your assets while you are healthy and able. Your Living Trust allows you to name a successor trustee to take over running your trust when you are no longer able-bodied or if you pass away.

Once your Trust agreement is made, you will fund all of your property into the name of your Trust. If you miss funding any item, that property will have to endure probate to move it into the name of your Trust.

How It Works

Once a Trust is funded, the individual no longer owns the items, the Trust does. The individual is in control of the Living Trust, but if he or she should pass away, the Trust will simply move to the successor trustee’s control. Your Trust is an entity separate from you that continues to live when you die. Because your items belong to the Trust and not to you, they will not have to endure probate upon your death. Your successor trustee will use your Living Trust to pay your final debts and pass out what is left to your chosen beneficiaries.

Tags: avoiding probate, trusts