What is a probate avoidance trust?

A probate avoidance trust is an estate planning tool used in Delaware to help individuals avoid the time and costs associated with probate. Probate is the legal process used to validate a will or verify an estate after someone has passed away. In Delaware, a probate avoidance trust is an arrangement between a grantor (the person setting up the trust) and a trustee (the person who will manage the trust). The grantor deposits assets into the trust and names a beneficiary (the person who will benefit from the trust). The trustee is responsible for managing the trust’s assets and distributing them to the beneficiary according to the trust’s terms. The benefit of a probate avoidance trust is that it allows assets to be transferred to the beneficiary without being subject to the time and cost associated with the probate process. In Delaware, an estate becomes subject to probate if its value is over $50,000, so by transferring assets to a trust, the estate can be kept below that limit and, thus, avoid probate. This can save family members considerable time and money, along with providing additional privacy and flexibility.

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What is a probate avoidance trust?

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