How Does A Trust Avoid Probate
Probate occurs if one does not name a beneficiary for an account (IRA, 401K, etc.) the funds will go into the estate and will be distributed through probate causing delays, reducing the amount received by the beneficiaries, and limiting payout options. By assigning the trustees to disperse the assets properly to beneficiaries and investors, the courts are avoided and any taxes that occur due to income are left up to the individuals receiving said assets. No matter what one has as a recurring stipend (Social Security, Pension, Disability, etc.), a Trust can be named as the Beneficiary, allowing the Board of Trustees to manage the finances and distribute accordingly.