Does a testamentary trust avoid probate?
Does a testamentary trust avoid probate?
A testamentary trust allows you to transfer assets after your death to your designated beneficiary after you pass away. This way, your assets will pass to your son after your death. While this arrangement may not eliminate the need for probate, it does avoid the probate process. However, this type of trust does require some additional planning.
One reason for choosing a testamentary trust is that it is inexpensive. Unlike a will, there are no up-front costs. However, probate court fees add up over time. Your trustee will be required to meet with the court each year until your assets pass to your beneficiary. That could be a substantial sum of money.
Another reason to use a testamentary trust is to leave a gift to a minor child. Minors do not have the capacity to make wise financial decisions. In these cases, a testamentary trust will provide guidelines for how to use the trust's assets. A trust can also hold funds for the beneficiary until he or she becomes legal. This can protect your inheritance if a child spends it recklessly.
Testamentary trusts may also avoid probate altogether. Probate fees are high because assets must be probated before they can be passed to beneficiaries. A testamentary trust is an alternative to probate, but it still requires the trustee to go to a probate court each year.
If you have any questions or need a Probate Attorney, please call this law firm for a free consultation.
Ascent Law LLC
8833 S Redwood Road Suite C
West Jordan UT 84088
(801) 676-5506
