Do assets in a living trust bypass probate?
Yes, and depending on how your state handles probate, that may or may not save time and money. Some states have simplified their probate procedures, but elsewhere the process can be costly and time-consuming, eating up perhaps 6% to 10% or more of a probate estate (but keep in mind that a chunk of that may be the fee to the executor, which may be your child). In some states, such as California, revocable living trusts are commonly used to bypass probate. But only assets you own in your own name at death are probate assets — so your probate estate may be smaller than you think, making avoiding probate less of a necessity. Assets not subject to probate include property you own jointly with the right of survivorship, the proceeds of life insurance policies on your own life that have named beneficiaries and balances in IRAs and 401(K) plans that have named beneficiaries, as well as the assets owned by a revocable living trust. And remember that probate has some benefits, such as shutting
