What are the Key Differences Between Probate and Trust Administration?
By Barry Zimmer on September 7th, 2017 in Probate
A Sharonville trust administration attorney provides representation to all parties with an interest in the trust administration process. This process is similar to the probate process in that the trust administration process is used to facilitate the transfer of assets following a death. However, there are also very important differences between trust administration and probate. Those who are making an estate plan need to understand these differences so they can decide if they want to make a trust. Those who stand to inherit or who are in charge of helping to facilitate the transfer of assets after a death also need to know how the probate process and the trust administration processes work.
Zimmer Law Firm is here to help. We advise clients making an estate plan about whether they should take steps to allow at least some of their assets to transfer through trust administration instead of probate process.
We also provide representation to trust administrators, the executor of an estate, heirs or beneficiaries, and others who are involved in the process of winding up the affairs of a deceased person (decedent) after a death has occurred.
Give us a call to find out more about how we can advocate for you during trust administration or during the probate process. You can also read on below to learn about some of the key differences between probate and trust administration, which include some of the following differences.
The Trust Administration Process Can be More Private
The probate process takes place in court. Private details about personal financial situations can become a part of court record. The trust administration process does not need to take place in court unless there is a problem – such as a breach of fiduciary duty — and a judge needs to become involved.
If you are making plans for how you want your assets to transfer and you want to make sure that all of your most personal information doesn’t become part of court proceedings, you should consider the creation of a trust so assets can transfer via the trust administration process.
Unfortunately, if no advanced plans were made to facilitate the transfer of assets through trust administration, there will be nothing that surviving family members can do about the need for assets to transfer through the probate process. This process isn’t an optional one after most deaths when no advanced probate avoidance plans were made.
The Trust Administration Process Can Be Much Faster
According to Investopedia, it is common for the probate process to last around a year. This, obviously, can be a very long time – especially when heirs or beneficiaries were dependent upon the income of the decedent and they need their inheritance to maintain their quality of life. The trust administration process can facilitate the timely transfer of money and property to new owners so there is no delay in heirs or beneficiaries receiving the assets they need after a death.
The Trust Administration Process Could be Less Costly
Investopedia also indicates that the cost of the probate process is usually equal to around three percent to seven percent of the value of the estate. This can be quite a lot of money, and it is money that may be better used by heirs or beneficiaries if there is a way to avoid these costs. The trust administration process is often the best way to avoid these costs, since the trust administration process tends to be a much less expensive method of facilitating the transfer of assets after a death.
Getting Help from A Sharonville Trust Administration Attorney
These are just some of the many ways that the trust administration and probate processes differ. For most people, trust administration is undeniably a better way to transfer assets than the probate process. However, the process of creating a trust must be done while the creator is still of sound mind. Since trust administration can only be used to transfer trust assets if a trust creator plans ahead to create and fund the trust, it is an option only in limited situations.
If you are making an estate plan and you want to make sure that your loved ones can benefit from the enhanced privacy, reduced costs, and timeliness of trust administration, you should call Zimmer Law Firm right away to find out about incorporating trusts in your estate plan. If your loved one had a trust and you are a beneficiary, trust administrator or otherwise have a role to play during the trust administration process, you can also get help from our legal team.
To find out more about the assistance our firm can offer, join us for a free seminar. You can also give us a call at 513.721.1513 to talk with a Sharonville trust administration attorney at any time.