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The probate process can be long and arduous. Even in the best of circumstances, it can last nine months or longer. In contested cases, the probate timeline can extend for several years.

For many families in Pennsylvania, one of the biggest concerns after a loved one passes away is waiting out the probate process. While probate serves an important legal function, it can be time-consuming and stressful.

Luckily, there are a few ways you can prevent the probate process from dragging out. By setting up a living trust and being proactive about your estate planning, you can avoid probate as much as possible and make sure your loved ones are financially protected.

How Does a Living Trust Work?

A living trust is also called a revocable trust in PA. It is known as revocable because it can be revoked and changed by you. As the grantor, you transfer ownership of your assets to the trust. Often, you serve as the trustee. This means you can manage your property like you did before.

Because the trust is revocable, you can change it, add and remove assets, or dissolve it entirely as long as you’re alive and competent. Upon your death, a successor trustee steps in to distribute your assets according to the terms of the trust.

How a Living Trust Avoids Probate

Under 20 Pa.C.S. Chapter 31, probate is only required for assets that are just in the deceased’s name at death. For instance, you could deed your home to the revocable trust. Then, the successor trustee who takes over after you die can give it directly to the beneficiaries. Similarly, you could put your bank account into the revocable trust’s name so that the money passes directly to your beneficiaries via the trust. 

Assets titled in the name of a living trust are non-probate assets. This means that they transfer directly to beneficiaries without court involvement. Thanks to this process, the assets can skip the delays and expenses of probate entirely.

Benefits of Using a Living Trust in Pennsylvania

From shorter probate timelines to better privacy, there are many advantages to using a living trust in Pennsylvania. As part of your estate and trust planning in Pennsylvania, you should talk to an experienced trust lawyer about the best options for your estate. Our attorneys can help you determine the best way to minimize taxes and ensure a streamlined probate process.

There are a few important benefits to using a living trust to bypass probate.

• Privacy: Probate is a public process, so all of the assets that go through probate must be publicly recorded. Once filed, wills and inventories become part of the court record. A living trust keeps your estate plan private.
• Convenient Management: If you become incapacitated, the existence of the living will means you already have everything set up for a successor trustee to take over. Thanks to the successor trustee, you won’t need a court-appointed guardian.
• Flexibility: Because it is revocable, you can amend the trust at any time to reflect changes in your family, finances, or wishes.
• Speed: Trust administration is usually faster and much less expensive than probate. Beneficiaries may receive their inheritance within weeks or months instead of having to wait a year or more for the entire probate process to finish.

Drawbacks to Using a Living Trust

While there are many advantages to using a revocable trust, there are also some drawbacks to consider. At the Clause Law Group, we can walk you through all of the advantages and disadvantages associated with your living trust.

• Funding Issues: It is very important to remember that only the assets that are transferred into the trust skip probate. If you forget to update the title on your assets or buy something else after setting the trust, those other assets will still have to go through probate.
• Taxes: Under 72 P.S. § 9101, Pennsylvania’s inheritance tax still applies to transfers at death. Additionally, a revocable trust in PA doesn’t provide any tax savings during your lifetime.
• Costs: In general, setting up and maintaining a trust will be more expensive than preparing a simple will. This is why many people create a pour-over will as well as a trust because the pour-over will directs all of the individual’s assets to go into the living will at their death.

Get Professional Help Setting Up Your Living Trust

By partnering with the experienced legal professionals at the Clause Legal Group, you can get help drafting a trust, properly transferring property into the trust, and determining the best steps for setting up your estate. We can make sure your trust works in conjunction with your will and powers of attorney.

Creating a living trust is more than just filling out a bunch of forms. By partnering with a top-rated law firm in Newfoundland, you can get a customized estate plan that matches your assets, family situation, and long-term goals. 

Give us a call today at (570) 676-5212 to learn more about our estate planning options.