Probate and Trust Administration: What You Should Know
When it comes to transferring your assets to your loved ones, most people are confused about how they should proceed. Luckily, you’re not alone! That said, you must remember that not everyone needs to have trust. But how does that affect the probate administration?
We understand you may have many questions about probate and trust, so this article will serve as a guide for everything you should know regarding these processes. If you’re contemplating setting up a trust or probate administration, keep reading.
What is a Trust?
Generally, trust is a written document that’s useful for when you’re alive and after you pass away. The document further describes how you want to spend the money during your life and how to share them after your death.
Additionally, a trust is considered an arrangement between three parties:
The grantor – the person who funds the trust
The trustee – the person who manages the trust
The beneficiaries – people who are eligible to use the money from the trust
As a grantor, you must select a trustee to manage your trust when you’re no longer able to do so. However, you also have the right to revoke the trust at any time.
Since this can be a complex process, you need professional help from local attorneys. Suppose you live in Fort Meyers, Florida. In that case, you can contact the Warnock Law Group – a team of qualified lawyers specializing in trust administration. They can help you throughout the entire trust process and answer any questions you might have.
3 Reasons You Should Create a Trust
A living trust comes with many benefits, especially since your loved ones are likely to go through a tough time after you pass away. That said, here are three reasons you should create a living trust:
When you transfer your assets while still living, they will avoid probate and paperwork after your death. The trustee, on the other hand, will share your assets depending on the rules and terms of the living trust.
Unlike probate administration, the terms of your trust are private, meaning no one can read them. Anyone can have different reasons for wanting privacy, especially if children are involved. This is one of the key aspects of setting up a living trust.
Having a Trustee to Manage Your Assets
A trustee is your best solution when you’re unable to manage your assets. If you transfer your assets into your trust and later become incapable, your trustee can take over your assets and manage them successfully.
What is Probate Administration?
Probate administration, on the other hand, is a process that may begin after the decedent’s death, though the assets require court involvement. Although most states don’t have a deadline to start the process, it’s usually preferable to initiate it within a few months after one’s passing.
However, the differences between trust and probate administration may still seem complex to many people. That’s why hiring Probate and Trust Administration Lawyers from renowned law firms can help you differentiate between these two processes and help you initiate the will.
When it comes to the process, you can file a petition with the court, and they’ll select an executor. However, if the decedent didn’t have a will or didn’t name an executor, the court will select one from the state law. Once the executor has paid all the taxes and debts, they can start distributing assets to beneficiaries and close the case.
3 Benefits of Probate Administration
Let’s face it, everything has its pros and cons, and a probate process is no different. However, probate administration is rather beneficial, and here’s why:
Protect Small Assets
The probate is extremely helpful to protect small assets, especially for people who didn’t leave a will beforehand. Such instances have a thorough process that ensures the proper people inherit the decedent’s assets.
People who want their distribution of property to be public can do so with the help of the probate process. Since wills are public, the information they have inside also becomes public after a person’s death.
Bear the Costs
Another benefit to the probate is bearing the expenses of the process. For those who don’t have sufficient financial resources to start planning, your estate can handle the costs after your death.
However, both trust and probate administration is difficult to comprehend, so if you have more questions, you can contact us at:
6843 Porto Fino Cir,
Fort Myers, FL 33912, USA