What is a probate avoidance trust?

A probate avoidance trust is a type of trust used to help an individual avoid the costly and time-consuming process of probate. Probate is a court-supervised procedure to settle an estate after someone passes away. When an individual dies, his or her assets must be gathered, an inventory of all assets must be created, and all debts, taxes, and other liabilities must be paid before the remaining assets can be distributed among the beneficiaries. This process can be expensive and time-consuming, but a probate avoidance trust can help a person avoid it. A probate avoidance trust is typically created during an individual’s lifetime. Upon the individual’s death, the trust becomes active, and the trustee—often a family member or close friend, or a professional trustee—is responsible for managing the trust and transferring the individual’s assets to the beneficiaries according to the terms of the trust. Because the court is not involved in overseeing the transfer of the assets, the probate process does not have to be completed, which can save time and money for the estate. In Washington, a probate avoidance trust can also be used to assist an individual in planning for potential long-term care and medical expenses. This type of trust allows the individual to preserve assets if he or she requires long-term care services, such as nursing home care. These trusts are complex, and it is important to make sure that they are properly established and funded in order to take advantage of them.

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