Quora Answer: Are Living Trusts Effective at Avoiding Probate?

The following is my answer to a Quora question: “Are living trusts effective at avoiding probate?”

A living trust becomes a testamentary trust upon the death of the settlor, which is an irrevocable trust.  Depending on the trust document, trusts are effective at avoiding probate.  However, this applies only to assets in the trust.  Grantors of trusts do not have all their assets in the trust.  Whatever is not in trust is still subject to probate, although a will would mitigate the cost and the time undertaken by the process. 

Depending on where you are, trusts not only avoid probate, but also mitigate tax liability.  The trust has to pay the liable tax for any disbursement to beneficiaries.  And since a trust has its own trustees, the executors of the estate have no jurisdiction over the trust, or assets under trust management.