The Differences Between Probate and Trust Law

Probate and trust law are two phrases that are frequently used in relation to estate planning. They are two distinct processes, even though they both have to do with how assets are distributed when someone passes away. The distinctions between trust law and probate law are listed below:

Probate Law:

The legal procedure of transferring a deceased person’s assets to their heirs or beneficiaries is known as probate. An executor will be chosen by the court to handle the estate when a petition to open probate is filed with the court. The executor’s duties include asset identification and inventory, payment of any obligations and taxes, and distribution of any leftover assets to the beneficiaries in accordance with the terms of the will or applicable state legislation.

Probate may be a time-consuming and expensive procedure, which is one of its primary disadvantages. The procedure might take several months or even years to complete, and costs associated with the court, the executor, and the attorney can soon pile up. Furthermore, since probate is an open procedure, anybody can examine the court documents and view the specifics of the estate.

Trust Law:

In a trust, one person (the trustor) gives assets to a trustee for the trustee to manage on behalf of another person (the beneficiary). Trusts can be created for a number of reasons, including safeguarding assets from creditors or providing for young children. Revocable trusts allow the trustor to make changes while they are still alive, but irrevocable trusts are unable to be changed once they have been formed.

Avoiding probate is one of the key advantages of trust. The assets do not need to go through probate because they are owned by the trust and not by the individual. This can save time and money while maintaining the privacy of the estate’s specifics. Furthermore, trusts can provide flexibility in asset distribution and assist in defending assets against litigation and creditors.

Thus, while both probate and trust law deal with the distribution of assets following a person’s death, they are distinct procedures with various advantages and disadvantages. While trusts can assist avoid probate and offer greater flexibility and security for the assets, probate can be a time-consuming and expensive procedure. Working with a knowledgeable estate planning lawyer will help you choose the best course of action for your particular circumstances.