Can a trust avoid probate and claims against the estate?
TOP A parent had his assets transferred into a trust. We thought this would allow us to avoid probate and paying any claims of creditors. Now the attorney tells us that he has to wait until a year passes before making any distributions. Doesn t the trust avoid probate and claims against the estate? If you feel uneasy about the information received from the attorney/trustee, you certainly can engage your own attorney. However, it might make sense to simply ask why his advice has changed. Depending upon liquidity of an estate, and the expected taxes, administration expenses, and debts of the decedent, and how well the decedent’s financial affairs are known by the fiduciaries, it is sometimes possible to make an early distribution. In other situations, where information is imperfect, prudence frequently dictates holding off on distribution until no more claims can be brought, and any amounts for income taxes or estate taxes have been determined. The trust can avoid probate, but there are
