Transferring assets during probate can be a long process under the best of circumstances. Furthermore, the value of the assets can diminish during estate administration due to unforeseen costs, such as taxes or litigation from heirs. For many Georgia residents, it would be much more efficient and less costly to put high value assets, such as a home, into a trust since trust administration is often less of a hassle.
The assets in a trust do not have to go through probate. Therefore, the trustee only has to manage the property and make distributions in accordance with the provisions of the trust. Furthermore, trust assets are often shielded from estate taxes, creditors and ex-spouses.
The most valuable assets that most people own are their homes. A trust can be set up during the life of a homeowner, who then acts as the trustee and beneficiary until death. At that point, the person named in the trust to take over its administration continues those duties on behalf of the beneficiaries named in the trust. A significant advantage of putting high-value property into a trust is that it will be available for distribution much sooner after death than it would be if it had to go through the probate process.
An attorney can help explain what trust administration entails and provide information on how to best structure a trust to provide the maximum benefit possible. Fortunately, a trust can be tailored to an individual’s needs and the needs of his or her heirs based on individual circumstances. Georgia residents who want to minimize the amount of work their loved ones will have to do after their deaths should consider creating trusts.
Source: realtor.com, “Why Should I Put My Home in a Living Trust?“, Lisa Kaplan Gordon, Oct. 5, 2016