How Does a Revocable Trust Avoid Probate?

Probate is the general administration of a deceased person's will or the estate of a deceased person without a will. During probate, the administrator/executor has the responsibility of managing the decedent’s estate by receiving all probate assets of the estate, determining and paying all lawful debts of the estate, making distribution to the proper beneficiaries under the will, or in the case of intestacy, to the intestate heirs at law according to the laws in effect in Virginia, and to report to the Commissioner of Accounts on the actions taken during administration.

A revocable trust is a trust whereby provisions can be altered or canceled depending on the wishes of the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.

ACTEC Fellows discuss in easy-to-understand terms the purpose and role of a revocable trust in avoiding probate, what a revocable trust can and cannot do, if a revocable trust can protect assets from creditors, and steps individuals need to take when setting up a revocable trust.