Many of my clients come in and tell me that they want a living trust. Sometimes they say ‘revocable trust’.
I ask them, “Why?”
Their usual answer? “To avoid probate.”
“Why do you want to avoid probate”, I ask?
“Oh, my mother died without a trust and after she died, it was a mess. It cost a fortune and took forever.”
Is it true? Will a trust avoid probate?
The answer is: “It depends.”
If you have a lawyer prepare a document called a living or revocable trust AND you transfer your property to the trust, then you MIGHT be able to avoid probate. That usually means transferring real estate from your name to the trust by way of a deed AND transfering personal property such as bank accounts to the trust.
You probably also want to have a “pour-over” will so that your trust can be funded with your property after you die. After all, you could pass on to the next world having a winning lottery ticket in your pocket!
The point is: If you want to avoid probate so that your heirs can access your funds without obtaining a court order, then you must have a trust document AND you must transfer your property to that trust.
Sound complicated? A little. Your attorney, banker, or money manager should be able to help you without much added cost.
Point is, don’t just set up a trust. At the Law Office of Debra G. Simms, we make sure our clients are advised to properly fund the trust so that it works the way it is intended.
Call now for a consultation.
