How does a living trust avoid probate and prevent court control of assets at incapacity?
REMEMBER – (1) Probate Court controls the property of a deceased owner. (2) When you make your Living Trust, you transfer title of your assets from your name to your Trust, (which you control). Legally (on paper) everything now is owned by your Trust. (3) So that, when you die, SINCE THE TRUST (the owner of the assets) IS A PIECE OF PAPER THAT NEVER DIES, the probate court has no ability to control those assets. – There is no deceased owner! – The concept is quite simple. This is what keeps your property, heirs and family out of Probate Court.
When you set up a living trust, you transfer assets from your name to the name of your trust, which you control – such as from “Tom and Sue Bossman, husband and wife” to “Tom and Sue Bossman, trustees under trust dated (date of trust).” Legally you no longer own anything (don’t panic: everything now belongs to your trust), so there is nothing for the courts to control when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts. 7. Do I lose control of the assets in my trust? Absolutely not. You keep full control. As trustee of your trust, you can do anything you could do before – buy/sell assets, change or even cancel your trust (that’s why it’s called a revocable living trust). You even file the same tax returns. Nothing changes but the names on the titles. 8. If something happens to me, who has control? If you and your spouse are co-trustees, either can act and have instant control if one becomes incapacitated or dies
When you set up a living trust, you transfer assets from your name to the name of your trust, which you control — such as from “Bob and Sue Smith, husband and wife” to “Bob and Sue Smith, trustees under trust dated (date of trust).” Legally you no longer own anything (don’t panic: everything now belongs to your trust), so there is nothing for the courts to control when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts.
When you set up a living trust, you transfer assets from your name to the name of your trust, which you control — such as from “Bob and Sue Smith, husband and wife” to “Bob and Sue Smith, trustees under trust dated (date of trust).”Legally you no longer own anything (don’t panic: everything now belongs to your trust), so there is nothing for the courts to control when you die or become incapacitated. The concept is very simple, but this is what keeps you and your family out of the courts.
