Monday, September 1, 2014

Isn't the purpose of a trust to avoid the probate court when the first trustee dies?

Question

Isn't the purpose of a trust to avoid the probate court when the first trustee dies?



Answer

There are many reasons for a trust. Avoiding the probate court is just one of them.



Answer

Four main reasons to creating a Trust.

#1 To Avoid Probate

#2 Reduce Federal Estate Taxes

#3 Long Term Distribution of Assets

#4 Control of Assets when Grantor is Incapacitated



Answer

However, if you have r/e property, it will need to be probated.



Answer

Most trusts are set up in order to avoid probate when the Grantor/Settlor/maker dies. That person is usually the trustee, but the death of a trustee has no bearing on probate.



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