Why are so many people setting up living trusts to avoid probate?
1. A Probate Is Expensive. Attorneys love probates – we are entitled to charge large fees on a probate. However, what is good for attorneys is not what is best for your loved ones. The attorney’s fees range from 2-4% of the gross value of your estate. The executor’s fees will be the same amount unless the executor waives them. Also, court costs and appraisal fees are added.
On the other hand, a properly created and maintained living trust avoids probate. When you are gone, your successor trustee simply pays your last bills, reads your trust to see who gets your property, and then distributes the property. This all occurs without reporting to the probate court.
2. A Probate Means Delay. A probate takes at least six months to get your assets to your loved ones. We feel this delay is actually worse than the expense of a probate because of the potential hardship and emotional drain. On the other hand, property in a living trust generally can be distributed in a few short weeks.
3. A Probate Invades Your Privacy. A probate is open to the public. In a probate, anyone can go to the court clerk’s office and find out a surprising amount of information about the deceased and his or her family. A living trust, on the other hand, avoids such an invasion of privacy. No probate is needed if the living trust is set up and maintained properly. With a living trust, only your loved ones and your attorney will know about your affairs.
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