Trusts -- Minimizing Probate Expenses

Minimizing Probate Expenses at Death

Assets passing to a decedent's heirs by will must first pass through probate. Probate is a court supervised process of transferring ownership of the decedent’s assets to the heirs. The probate process can be time consuming and expensive. Unlike assets passing by will, assets held in trust pass to a decedent's heirs without passing through probate.

Minimizing Probate Expenses During Lifetime

If an individual who owns property in his or her own name becomes legally incapacitated, a conservatorship estate (which is a probate proceeding) may be required to grant a conservator legal authority to manage the assets of the incapacitated individual. Trusts can be helpful in avoiding the expenses of a conservatorship estate. For example, if an individual holds assets in a revocable living trust and that individual becomes incapacitated, the trustee (or successor trustee) of the revocable living trust typically can manage the assets of the incapacitated individual without involving the probate court.