Living Trust FAQ

Questions:

• What is a living trust?
• Why should I make a living trust?
• How does a living trust avoid probate?
• Is it expensive to create a living trust?
• Is it a hassle to hold property in a living trust?
• Is a living trust document ever made public, like a will?
• Does a living trust protect property from creditors?
• If I make a living trust, do I still need a will?
• Can a living trust reduce estate taxes?

Answer:

How does a living trust avoid probate?

Property you transfer into a living trust before your death doesn't go through probate. The successor trustee -- the person you appoint to handle the trust after your death -- simply transfers ownership to the beneficiaries you named in the trust. In many cases, the whole process takes only a few weeks, and there are no lawyer or court fees to pay. When all of the property has been transferred to the beneficiaries, the living trust ceases to exist.

For more details, see Nolo's article How Living Trusts Avoid Probate.