If you’ve set up a Revocable Living Trust, congratulations! You’re definitely on the right track. But… you’re only halfway there. Many believe because they took the time to create a Trust, their estate will automatically avoid probate. Unfortunately, this is a false sense of security.
The key to probate avoidance is proper asset ownership, including the full funding of your Revocable Living Trust.
What are Probate Assets?
What assets require probate?
- Accounts and real estate titled in your sole, individual name [without a payable on death (POD) or transfer on death (TOD) designation]
- Accounts and real estate you own as a tenant in common
- Contract assets naming your estate as beneficiary
What Assets Avoid Probate?
What assets automatically avoid probate after you die and, therefore, do not need to be funded (or cannot be funded) into your trust?
- Accounts and real estate owned as joint tenants with rights of survivorship
- Accounts and real estate owned as tenants by the entirety
- Life insurance
- Retirement accounts, including IRAs, 401(k)s, and annuities
- Life estate property
- Payable on death (POD) and transfer on death (TOD) accounts and, in some states, transfer on death or beneficiary deeds
What’s the Next Step?
Ask a qualified estate planning attorney to confirm that your Revocable Living Trust is fully funded and that all assets are aligned with your estate planning. Proper asset ownership is key to probate avoidance.
Gratia specializes in providing comprehensive solutions in Estate Planning, Probate, Family Law, and Business Formation. Whether guiding families through the intricacies of estate planning, navigating the probate process, or advising on business and family law matters, Gratia ensures every client feels respected, informed, and confident. Her approach is characterized by clear communication and tailored strategies that reflect the specific needs and values of her clients.
Gratia is deeply embedded in the local area, often participating in community outreach and educational programs. She offers both virtual and in-person consultations to meet the diverse needs of her clients.
