Many people try to avoid the probate process because it can be expensive and time-consuming. It can also involve numerous uncertainties and inconveniences for your loved ones.
Avoiding probate can be of even greater importance if you own property in more than one state. The downsides to probate can multiply if you own property in more than one state because probate will be necessary in each state where you own property.
Consider a revocable living trust
Creating a revocable living trust can be a good way to avoid probate in one or more states. A revocable living trust allows you to transfer ownership of your assets to the trust to be managed by a trustee on behalf of your beneficiaries. All assets owned by the trust will avoid probate.
Other benefits of a revocable living trust
Although creating a trust may seem daunting, a revocable living trust allows you to name yourself as the trustee, if you choose to. This means that after you fund your trust, you can continue managing your own property in the same way you always have.
The flexibility of a revocable trust allows you another degree of control. Because the trust is revocable, you can alter the trust whenever you want. You can add property to the trust, take property out of the trust or even close the trust, if you feel it is appropriate.
Other benefits include:
- Keeping your assets from becoming part of public record
- Distributing property according to your wishes
- Providing creditor protection for beneficiaries
Avoiding probate can be a wise estate planning goal, especially if you own property in multiple states. Although every person’s situation is different, create a revocable living trust can be one of the best ways to achieve that goal.