A Comparison between Probate and Living trust
Probate usually works on the will that has been written by the deceased individual. This takes place in the court and then the assets are transferred. While a living trust basically keeps the transfer from going public in the court. This is usually to keep the affairs private. The living trust is basically a legal document similar to a will. However, it only involves the transfer of assets to a trustee. A trustee can be the wife or children of the deceased. By having a living trust, the beneficiary or the trustee automatically gets all the assets of the individual after his/her death. This is a common way of avoiding probate. In this article, we have done a comparison of probate vs living trust.
Will is drawn in the lifetime of the individual and usually is a pretty small procedure. There is no other work involved in the lifetime of the individual. All the work starts after the death of the individual. This is known as probate and means giving the case to the court. Then, the court and the law are going to determine the treatment of the estate. This is usually a very long procedure and can take years. One of the reasons for this is that there can be a lot of conflicts and disagreements in probate. As everything is in public, all the beneficiaries are going to find out what the other person is getting. This can result in hatred and a lot of family members protest if the other party gets a greater percentage share of the assets. Therefore, probate cannot keep everyone happy and there are going to be a lot of unsatisfied people after a probate.
In a living trust, all the work needs to be done in the lifetime of the individual. This usually means choosing a trustee. After selecting a trustee, he/she needs to sign on several legal documents which state that all the assets are going to go to the trustee after the death of the individual. There is a lot of paper work involved in this. However, this makes life a lot easier after the death of the individual. So basically, there is almost nothing left to do after the death and everything is automatically transferred to the trustee without going public in the court. The trustee can then manage the assets and transfer them to other beneficiaries. Living trust is a very quick procedure when we do a comparison of probate vs living trust. Another feature of the living will is that the trustee signs a document which states that he/she can manage everything for the individual. In case of financial instability, the trustee is allowed to work on the assets to give the individual a return and can even pay bills on the assets.
Choosing between a living trust and a probate is a difficult task when you do a comparison of probate vs living trust. However, several things should be kept in mind. Living trust is a very smooth and fast procedure and involved a very less paper work. Also, nothing needs to be done after the death. However, probate comes in handy when the individual wishes to transfer the assets among a lot of different individuals. This will cause conflicts and a slow case but everything will go according to the deceased.
Probate usually works on the will that has been written by the deceased individual. This takes place in the court and then the assets are transferred. While a living trust basically keeps the transfer from going public in the court. This is usually to keep the affairs private. The living trust is basically a legal document similar to a will. However, it only involves the transfer of assets to a trustee. A trustee can be the wife or children of the deceased. By having a living trust, the beneficiary or the trustee automatically gets all the assets of the individual after his/her death. This is a common way of avoiding probate. In this article, we have done a comparison of probate vs living trust.
Will is drawn in the lifetime of the individual and usually is a pretty small procedure. There is no other work involved in the lifetime of the individual. All the work starts after the death of the individual. This is known as probate and means giving the case to the court. Then, the court and the law are going to determine the treatment of the estate. This is usually a very long procedure and can take years. One of the reasons for this is that there can be a lot of conflicts and disagreements in probate. As everything is in public, all the beneficiaries are going to find out what the other person is getting. This can result in hatred and a lot of family members protest if the other party gets a greater percentage share of the assets. Therefore, probate cannot keep everyone happy and there are going to be a lot of unsatisfied people after a probate.
In a living trust, all the work needs to be done in the lifetime of the individual. This usually means choosing a trustee. After selecting a trustee, he/she needs to sign on several legal documents which state that all the assets are going to go to the trustee after the death of the individual. There is a lot of paper work involved in this. However, this makes life a lot easier after the death of the individual. So basically, there is almost nothing left to do after the death and everything is automatically transferred to the trustee without going public in the court. The trustee can then manage the assets and transfer them to other beneficiaries. Living trust is a very quick procedure when we do a comparison of probate vs living trust. Another feature of the living will is that the trustee signs a document which states that he/she can manage everything for the individual. In case of financial instability, the trustee is allowed to work on the assets to give the individual a return and can even pay bills on the assets.
Choosing between a living trust and a probate is a difficult task when you do a comparison of probate vs living trust. However, several things should be kept in mind. Living trust is a very smooth and fast procedure and involved a very less paper work. Also, nothing needs to be done after the death. However, probate comes in handy when the individual wishes to transfer the assets among a lot of different individuals. This will cause conflicts and a slow case but everything will go according to the deceased.