Why a Living Trust?

Introduction

A Forewarning

Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17

Why a Living Trusts : Time, Time, Time (How Long Does It Take?)

The Average Probate Takes Two Years
A probate that finishes within a year of death would generally be considered a very fast probate which is why it is usually closer to two years on average. Given the smallest glitch, the duration and burden of the probate process grows dramatically. Meritorious or not, seldom is any challenge or difficulty dispensed of quickly. This is the genesis of the five year plus probate horrors that you hear about.

Whatever Time Probate Takes, It’s Too Long
Regardless of the duration of probate – whether it is nine months, 18 months, two years, 5 years, or longer – its duration is usually far greater than need be. There are numerous aggravations and repercussions to deal with during this time, not the least of which is the complete inability to put some closure to what is typically a painful event in most people’s lives. Norman F. Dacey was an early pioneer and advocate for Living Trusts who published a 1966 book called “How to Avoid Probate” where he quoted widely syndicated columnist Thomas Collins.

…”then the lawyer folded up the will and in effect told the children to come back in two years and he’d try to have them some money”……..”Paperwork, judges, lawyers, affidavits, appraisals and time, time, time. So much time, in fact, that when the children at last cash in, the grave will be cold, the weeds sprouting – and they will be getting their money not from Papa but from a complex of tax men, lawyers, and courts”… “The dependents must thank a judge, a court, a lawyer, a politician, a bank or somebody else for letting them have the money.”……. ”My best advice on the matter is just not to die”.

A Trust Can Be Settled As Quickly As Desired
In stark contrast you can begin the process of settling a Living Trust estate immediately. I have witnessed Living Trust estates settled, liquidated (house sold) and distributed in as little as ten days from the person's death. While few people feel the need to deal with the estate quite that quickly -- it is by choice not mandate. It is a different matter altogether for the family to take time when they are still fully in control of the assets -- retaining the ability to access accounts, put houses up for sale, pay bills, liquidate assets and make other moves as desired while in the process of settling the trust estate. Given the cooperation of the beneficiaries, settling the Living Trust estate can occur just about as quickly as the successor trustee sets his or her mind to it -- and whatever time it does take is not a result of some government dictate or bureaucratic process.

One Probate Not Enough – How About Multiple Probates?
With a will, you must conduct a separate ancillary probate in every state that you own real property! (As if one wasn’t enough.) A Living Trust however can deal with all property in all states (and many foreign countries).

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