When someone dies, their estate goes through probate, and the assets listed in their will are liquidated to pay off estate taxes and remaining debts. The executor will then distribute the remaining assets according to the terms of the will. However, this process is a little different when the individual has also established a living trust.

Guide to the Relationship Between a Trust & the Probate Process

What Is Probate?

After an individual passes away, their creditors have a period to issue claims against the individual’s estate. During this same period, the executor of the will must pay estate taxes out of the estate’s assets. This process can take anywhere from six months up to two years, depending on how long it takes to liquidate assets and receive claims from creditors. Once they finish settling the estate, they can distribute the remaining assets to the beneficiaries.

What Is a Living Trust? 

A living trust is a private document that holds assets on behalf of beneficiaries, which means no one will know what it contains, or who is a beneficiary. It is also known as an irrevocable trust, which means it may not face the same estate taxes as assets listed in a will. There are many more advantages to adding this document to your estate planning strategy.

How Will a Trust Help Keep Your Estate Out of Probate?

Since a trust is private, it won’t go through the same probate process as a will. This difference means assets listed in the document won’t be liquidated to pay off the deceased individual’s creditors, and estate taxes on these assets will also be lower. You can take advantage of this in cases where you want to leave a specific asset to a spouse or child. While the executor might liquidate that item as a part of the assets, it’s protected from that possibility when listed in the trust. The assets listed in this document will also avoid the lengthy probate process, which means the executor can pass them onto beneficiaries sooner.

If you’re ready to create an estate plan, Lance S. Cox, Attorney at Law, can help you understand the benefits of each option. Since the firm’s legal team has experience in estate planning and probate law, they will help you create a plan to help your beneficiaries get their inheritances sooner. To learn more about their estate planning services, visit their website. To make an appointment for an initial consultation, call (513) 528-6000.