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Trusts |
What is probate?
Probate, as it pertains to trust, is any legal matter relating to
enforcing or disputing the trust of a deceased person. Upon death, the
personal assets of the deceased must be distributed and a trust is a
document created by the person prior to death that transfers their
assets upon death without being subject to the probate process, which
is a court governed process that regulates the distribution of these
assets. However, even with the wishes of the deceased individual mapped
out by way of a trust, disputes can still arise that require legal
intervention.
How does a trust work?
A trust is a document that transfers title property of the individual,
a grantor, to another individual, a beneficiary, prior to death so as
to avoid the probate process. During the life of the grantor, he/she
retains control over the property as though they owned it. The trust
process is:
- Grantor transfers all assets (property, bank accounts, partnership interests, etc) to the trust
- Grantor becomes trustee and retains complete control of assets
- Grantor assigns co-trustees to distribute assets as ordered by grantor
Advantages of using a trust
- Court supervised probate process is skipped
- Usually less costly than administering a will in probate
- Beneficiaries receive assets after death much quicker
- Some death taxes can be avoided
In all probate
matters, it is recommended that you seek professional legal assistance
to protect your interests. A lawyer who has experience in this area of
law can give legal advice that will assist you with the matter and will
ensure that the judicial process is properly followed. |
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