Real Estate/ How does a trust avoid probate?

HOW DOES A TRUST AVOID PROBATE?

A Trust is essentially a relationship, or contract, among three parties:

• A Settlor who creates the Trust;
• A Trustee who manages the Trust assets; and
• A Beneficiary who receives the Trust assets.

Typically, when the Settlor (creator) dies, the Trustee (manager) is bound by the terms of the Trust to deliver the Trust assets to the Beneficiary.

In this way, a Trust looks a lot like a life insurance contract. When the insured person dies, the life insurance company is bound by the terms of the policy to deliver the insurance proceeds to the Beneficiary.

Under California Law, a Trust's assets will usually pass to the Beneficiary(ies), without having to submit to the jurisdiction (or oversight) of the probate court.

And avoiding probate court could save thousands of dollars. That's because California probate court cases typically take a long time and cost a lot of money.

In addition, If you have a trust, did you know you should update it every 2 years? 

Please feel free to contact me with any and all your real estate needs. 

Sheryl Thornton Rodeo Realty Calabasas

818.903.4749 or SheryLLynnThornton@gmail.com