A trust directs proceeds from life insurance, banks, investment accounts, and other sources to be payable directly to one place: the trust. It makes the process of providing proper documents at the time of death irrelevant since all of the paperwork has already been taken care of and the intentions of the deceased have been expressed clearly in writing. With a trust, the estate does not need to petition the probate court to establish the validity of documents or accounts, as is normally the case. Thus, proceeds can be placed into the trust immediately. A trust can include a “transfer at death” clause. This cause allows your beneficiaries to merely file a death certificate to take possession of the family home, for example.
With an estate valued at $200,000, by avoiding probate, the family can often save as much as five times of cost of establishing the trust in the first place by avoiding the legal fees associated with having to go through probate. The peace of mind that having a trust provides cannot be overstated. Having a trust means less timing waiting for the financial affairs to be settled. Every day, Sean observes the emotional anguish that can be avoided by smart estate planning.