One of the key benefits of creating a Revocable Living Trust is the potential to avoid probate. When structured properly, assets placed in the trust during your lifetime are not subject to probate upon your passing. This is because the trust is a separate legal entity that continues to exist after your death, allowing for a smooth transfer of assets directly to your beneficiaries without court intervention.

How It Works

When you transfer ownership of your assets—such as real estate, bank accounts, or investments—into a revocable living trust, you retain full control of these assets during your lifetime. Since you can modify or revoke the trust at any time, it provides flexibility. Upon your death, a successor trustee you’ve appointed will manage and distribute the assets according to the terms you’ve outlined in the trust document.

Avoiding Probate

The primary reason a revocable living trust helps avoid probate is that the assets owned by the trust do not legally belong to you at the time of your death. Since the trust owns these assets, and the successor trustee can manage the distribution, the probate court doesn’t need to step in to oversee the process. This can lead to a quicker and more private transfer of assets to your beneficiaries.

Potential Probate Triggers

However, simply having a revocable living trust does not automatically shield all your assets from probate. For instance, if you forget to transfer certain assets into the trust (a process known as “funding” the trust), these items may still go through probate. Additionally, any assets that are not properly titled in the name of the trust—such as real estate, bank accounts, or personal property—will also be subject to probate.

To ensure that your revocable living trust achieves its goal of avoiding probate, it’s essential to periodically review your trust and confirm that all relevant assets have been transferred into it.

Conclusion

A well-crafted revocable living trust can be an effective tool for avoiding probate, ensuring your assets are distributed efficiently and with minimal court involvement. However, regular updates and attention to detail are necessary to fully realize these benefits. Consulting with an estate planning attorney like the Davis Schilken, PC team, is a good step toward making sure your trust is properly established and funded to avoid probate. Call our office today to schedule a no obligation meeting (303)670-9855.