Probate can be avoided by having a living trust. What is a living trust?
A living trust is a legal arrangement that allows a person (the grantor) to place their assets into a trust during their lifetime. The trust is managed by a trustee, who administers the assets on behalf of the beneficiaries according to the terms set out by the grantor. One of the primary benefits of a living trust is that it helps avoid probate in Georgia, as well as in most other states.
Here’s how a living trust avoids probate:
- Ownership Transfer During the Grantor’s Lifetime:
When the grantor creates a living trust, they transfer ownership of their assets (real estate, bank accounts, investments, etc.) into the trust. The grantor typically serves as the trustee during their lifetime, meaning they still control and manage the assets. However, because the assets are owned by the trust rather than the grantor personally, they are no longer considered part of the grantor’s estate when they pass away.
- Avoiding Probate Court:
Because the assets are held in the trust, they do not need to go through the probate process when the grantor dies. Probate is a court-supervised process for distributing a deceased person’s assets and paying off debts. With a living trust, the assets pass directly to the beneficiaries without court involvement.
- Successor Trustee Takes Over:
The grantor names a successor trustee in the trust document. When the grantor passes away, the successor trustee immediately takes over the management of the trust. The trustee is responsible for distributing assets to the beneficiaries according to the terms set out in the trust document, all without needing to go to court.
- Privacy:
Since the assets in the trust are not subject to probate, the distribution process remains private. In contrast, probate proceedings are public, and the details of an estate’s distribution are available to anyone.
- Flexibility and Control:
While the living trust avoids probate, it allows the grantor to retain full control and flexibility over the assets during their lifetime. If the grantor becomes incapacitated, a successor trustee can step in to manage the assets without needing a court-appointed guardian or conservator.
In summary, a living trust in Georgia avoids probate by transferring ownership of the grantor’s assets to the trust during their lifetime. Upon the grantor’s death, the successor trustee directly distributes the assets to beneficiaries, bypassing the need for probate court intervention.
Do you want to avoid probate in Georgia? We help people in across Georgia, especially in Alpharetta, Johns Creek, Milton, Roswell, Sandy Springs, Suwanee, Lawrenceville, Cumming, Dawsonville, Marietta, Canton and Woodstock avoid probate by putting a living trust estate plan in place. Call us at (770) 508-6525 to schedule your Strategic Consultation with our team.