Probate can be an expensive and time-consuming process. Fortunately, there are estate planning tools that can help estate planners develop an estate plan that addresses their concerns and meets their needs and may help them avoid the costly and time-consuming probate process. Probate can take time and money grieving families do not have.
Trusts are an estate planning tool that may allow property to be distributed without having to go through the probate process. Trusts can be used as part of an estate plan along with a will or by themselves. A trust is created when a property owner transfers legal ownership of the property to a person or institution which is referred to as the trustee so that they can manage the property for the benefit of the beneficiary.
Trusts are divided into two categories including testamentary trusts and living trusts. Within those two categories there are several different types of trusts including special needs trusts; spendthrift trusts; and charitable trusts. Different types of trusts can help in different situations so it is helpful for estate planners to be familiar with the different types of trusts and what they do.
An effective estate plan can provide peace of mind for both estate planners and their families. When developing an estate plan, there are a variety of considerations to take into account and it is helpful to keep in mind that an estate plan can include a variety of different components and trusts are one option to consider that may also save the time and expense of probate.