PROBATE AVOIDANCE Sample Clauses

PROBATE AVOIDANCE. Assets funded into a living trust during the property owner’s lifetime will not pass through probate. The provisions of the trust document will govern distribution of the trust assets at the grantor’s death. In some cases, the trust directs that assets continue to be held, invested, and administered for the benefit of loved ones. WHAT IS PROBATE? Probate is the court-supervised process of proving and administering a will. This process can be time consuming and expensive depending on the size and complexity of your estate. Probate requires that a full accounting of your assets and debts be made public record. Furthermore, when your will is probated, its terms generally become public record.

PROBATE AVOIDANCE. Having a Trust helps you avoid the time and expense of the probate process by managing your assets during your lifetime. (See Common Misconceptions) Assets in a Trust do not need to go through probate. Various examples of probate avoidance include: • Property held in a Trust at the time of the Grantor’s death is not subject to probate administration, thus saving in probate expenses. • Property can be distributed to the beneficiaries shortly after the Grantor’s death, avoiding much of the delay encountered with probate administration. • Property out-of-state can be transferred to the Trust to avoid probate later. For example, if a Michigan resident also owns real estate in Florida, then upon his death it will be necessary to conduct estate settlement proceedings in both states. If, however, the Florida real estate is transferred to the Trust before the Grantor’s death, the probate estate administration in Florida can be avoided. • If a Grantor becomes physically or mentally incapacitated, property held in Trust remains available to the Grantor without the requirement of a court-supervised guardianship or conservatorship.