Estate Administration vs Probate
Understanding Probate vs. Trust Administration
Probate and trust administration are two common legal processes that deal with the distribution of assets after someone passes away. Let's start by defining what probate is and then delve into why having a trust with a professional administering the estate can be a superior option.
Probate
Probate is the court-supervised process of authenticating a last will and testament of the deceased. Probate my also be used if the deceased person passed away without a valid will or trust (this is referred to as dying intestate). In both cases probate involves identifying and inventorying the deceased person's property, paying debts and taxes, and distributing the remaining assets to beneficiaries outlined in the will. Probate proceedings can be time-consuming, costly, and a matter of public record.
Trust Administration
When somebody passes away with a trust a trustee is able to handle the estate administration privately and in most cases without going to court. A Trust is a legal arrangement where a trustor (the creator of the gives a trustee the authority to manage assets for the benefit of one or more beneficiaries. When the trustor passes away, the trustee steps in to administer the trust according to the trust document's instructions. Trust administration is typically private, faster, and can bypass the probate process entirely.
Why Choose Trust Administration with a Professional
Having a trust where a professional administers the estate can offer several advantages over going through probate. Here are a few reasons why this option may be superior:
Privacy: Trust administration is a private process that does not become a matter of public record, unlike probate proceedings, which are open to the public.
Efficiency: Trust administration is often quicker than probate since it bypasses the court system, allowing for the expedited distribution of assets to beneficiaries.
Professional Expertise: A professional trustee, such as an attorney specializing in trust administration, can ensure that the trust is managed and distributed according to the trustor's wishes and in compliance with legal requirements.
Reduced Costs: While there are fees associated with trust administration, they can be more predictable and potentially lower than the expenses incurred during probate, which may include court fees, attorney fees, and executor fees. Most estate plans also allow the trustee to hire experts such as lawyers that can be paid for with the funds of the trust.
In conclusion, while probate serves an essential function in settling estates, opting for a trust with professional administration can provide a more efficient, private, and cost-effective alternative for managing and distributing assets after death. Consider consulting with a legal professional to determine the best approach for your estate planning needs. Contact us to get your estate plan stated today.
