What is a probate avoidance trust?

A probate avoidance trust is a legal tool used to help reduce the cost and complexity of the probate process. It is an estate planning tool used to avoid costly court proceedings and probate fees by transferring assets into a trust before death. In North Dakota, the trust is created by the individual, and includes a written document outlining the individual’s wishes regarding the transfer of their assets after death. The trust would include details such as who will manage the trust funds, who will receive the funds, and when the funds will be transferred to specific individuals or entities. With a probate avoidance trust in place, assets are transferred without need for court involvement or probate fees. The most common reasons to set up a probate avoidance trust are to avoid probate court costs, save time, and ensure privacy. With a probate avoidance trust, the deceased individual’s estate will not be made public, meaning the details of the assets and the identity of the recipients will not be widely known. In North Dakota, probate avoidance trusts are especially useful in situations where the individual has substantial assets or property, as the costs and time associated with probate can become burdensome. Additionally, for those individuals with minor children, a probate avoidance trust can ensure that their assets are managed after their death and pass to the designated recipients.

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What is a probate avoidance trust?

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