How do trusts avoid probate?
Trusts are a popular way to avoid Probate in California. Probate is the process of legally transferring ownership of property and assets after a person has passed away. This process can be time-consuming and costly. Establishing a trust for the person’s assets can help avoid this process. When a trust is created, it is a contract between the person who created the trust (known as the trustor) and the person who will manage the trust (known as the trustee). The trustor will transfer his or her assets to the trustee, and the trustee will manage the trust according to the trustor’s wishes. The trustor also names the beneficiaries, who will be the eventual owners of the assets in the trust. When the trustor passes away, the trustee is responsible for carrying out the trustor’s wishes and transferring the assets to the beneficiaries. This transfer can happen quickly, without any court involvement, and without the costly fees associated with the probate process. Trusts can be an effective way to avoid probate in California, but they are not the only option. Many people also use a joint tenancy or a transfer on death deed. Both of these options are simpler than creating a trust, but it is important to talk to a professional to make sure that you understand the pros and cons of each of these strategies.
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