A simple probate avoidance trust is a trust that an elder law attorney can help you to create so you are able to facilitate the transfer of your assets outside of the probate process. Many people could benefit from the creation of this type of trust, so don’t assume that a trust won’t help you unless you have a ton of wealth to pass down to heirs or beneficiaries.
Frank & Kraft can provide you with guidance on whether a simple probate avoidance trust would be a useful tool to include as part of your estate plan. If you decide that trust creation is the right course of action for you, we can also help you with the process and ensure that you make a legally valid trust document and fund your trust appropriately so you actually get the benefit of your trust and so your assets are actually able to pass outside of probate. You should give us a call today to find out more about the benefits of probate avoidance trusts and to determine if creating a trust is right for you.
Benefits of a Simple Probate Avoidance Trust
Some of the benefits of a simple probate avoidance trust include the following:
- Facilitating the timely transfer of wealth: The probate process can take around a year to complete, Investopedia reports. This is a long period of time that your heirs or beneficiaries will be living their lives in limbo as they wait to receive an inheritance and as they wait for the affairs of your estate to be wound up. If you can make a trust to facilitate the transfer of wealth through the trust administration process instead of the probate process, the whole process can usually be completed in just a few weeks unless problems arise so an inheritance can be received quickly and your loved ones will be able to move on with their lives.
- Facilitating the cost-effective transfer of assets. You can transfer wealth quickly to heirs or beneficiaries through the trust administration process, but more importantly you can also transfer it for much less money in most circumstances. The probate process can cost around three percent to seven percent of the estate’s value in court costs, legal fees, and other expenses. You don’t want all this money to be lost — you want it to go to heirs or beneficiaries. Transferring assets through the cheaper trust administration process allows your loved ones to inherit more since money isn’t wasted on probate.
You should be aware that just because a probate avoidance trust allows assets to pass outside of the probate process does not necessarily mean that the trust assets won’t be subject to estate tax if you have a substantial estate and you are leaving assets to loved ones other than your spouse. Working with an attorney is the best way to determine if a simple probate avoidance trust is the right tool for you to use to transfer your wealth to your heirs or beneficiaries.
Getting Help from Trust Lawyers
Trust lawyers at Frank & Kraft will work closely with you to determine if you should create a simple probate avoidance trust so you can facilitate the transfer of assets outside of probate to your loved ones. We can also help you to identify the other legal tools you may wish to use to secure your legacy and to best provide for your loved ones.
You should join us for a free seminar today to find out about the ways in which our firm can help you to determine if creating a probate avoidance trust is right for you. You can also give us a call at 317-684-1100 or contact us online to get personalized advice about the trust creation process so you can create a legally valid trust document and fund it with all of the assets that you hope to pass onto your loved ones outside of the probate process. Call today, because you never know when something could happen to you and it will become too late.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.