How do trusts avoid probate?
In Michigan, trusts can be a great way to avoid probate. A trust is a legal document that transfers ownership of assets out of the estate of the deceased person and into a trust. Once the assets are transferred into the trust, they typically do not go through the probate process. Trusts can be especially helpful when assets are jointly-owned, because the surviving owner would be responsible for going through the probate process if the assets were not in a trust. The trust can also help avoid taxes that might otherwise be incurred during the probate process. Trusts can be used for any type of asset, including stocks, bonds, and real estate. This is because the trust technically owns the asset, and not the person or persons in the trust. Therefore, the asset does not need to go through the probate process. Trusts can also reduce costs associated with the probate process, as they typically do not require legal assistance and can be easily amended or updated. Lastly, trusts are private, meaning that the details and assets of the estate are not made available to the public like in the probate process. In sum, trusts are a great way to avoid probate in Michigan, as they provide a private and cost-effective way to transfer assets without going through the lengthy and costly probate process.
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