07/09/2024
A plan for what will happen to your home after you die might not be fun to think about, but it’s very important. The probate process begins with filing your will in probate court, where its authenticity is validated. The court appoints an executor to manage the estate, who then identifies all assets and debts. Debts and taxes are paid from the estate, and remaining assets are distributed according to the will. If you die without a will, the court follows your state’s inheritance laws to distribute your assets, which can lead to outcomes you might not have intended. In contrast, creating a trust involves drafting a trust document and transferring ownership of your property to the trust. A trustee is appointed to manage the property according to the trust terms. Upon your death, the property in the trust is distributed directly to the beneficiaries, bypassing the lengthy and costly probate process. This makes trusts a more efficient option for asset distribution.
