Using a Trust to Avoid Probate Fees

When Simon's father passed away two years ago, he didn't think much about how his estate would be handled. His mother had died five years before, and his dad's will was clear about how his assets would be divided. Then came probate, a process to confirm the validity of his will. Not only did unexpected fees come out of his dad's estate, it took almost a year to settle and distribute it.

After his experience with probate, Simon didn't want to put his family through the same painful delays and expense. He wondered if there might possibly be a different solution. So, he turned to his financial advisor, who explained that the simplest way for Simon's estate to avoid probate hassles and costs would be to have his assets pass directly to his heirs. To do this, Simon would need to create a trust - the most common type being a revocable living trust1. This estate planning tool would allow Simon to put his assets where he wanted them to go and allow him to retain control over those assets until his death. He could also choose a successor trustee to distribute his assets according to his instructions after he passed away. If Simon changed his mind, his financial advisor explained that he could “revoke” or terminate the trust at any time.

Through the expert lens of his financial advisor, Simon discovered several advantages a revocable trust offered him:

  1. While the trust would have to pay capital gains tax on investments or property that gained value, no other taxes would need to be paid when he died, saving his heirs a potentially significant amount of money.
  2. Assets could include cash-investments, equity investments (mutual funds / stocks), bonds (individual or funds) or almost any other form of property.
  3. His chosen successor trustee could step in and manage his affairs without the intervention of a court if he became incapacitated.
  4. His financial details would be kept private after his death, whereas a will that goes through probate becomes public information.
  5. He could make changes to the trust document at his discretion.


To be thorough, his financial advisor also cautioned Simon on some of the drawbacks of a revocable trust:

  1. The need for regular review and monitoring should assets, or life circumstances change.
  2. Properties included in the trust need to be re-titled in the name of the trust, requiring additional time and processing fees.
  3. Living trusts offer limited asset protection, so insurance coverage should be revisited.
  4. Setting up a new trust usually involves significant legal costs up front to ensure that everything is done correctly.


However, these disadvantages can be managed with expert guidance.’ or something similar. This powerful tool relies on a team approach, starting with a professional financial advisor. Not only can they help you identify and prioritize your goals, but they can also help you decide if a trust is a good fit for you.

If it is, they can coordinate with your team of tax and legal professionals to ensure that your living trust is established in the right way for the right reasons. If you're thinking about estate planning, the best place to start is with a financial advisor.

Contact our office today to get the conversation started.


*Fictional characters for illustrative purposes only.   1Types of Trusts



Copyright © 2021 AdvisorNet Communications Inc. All rights reserved. This article is provided for informational purposes only and is based on the perspectives and opinions of the owners and writers only. The information provided is not intended to provide specific financial advice. It is strongly recommended that the reader seek qualified professional advice before making any financial decisions based on anything discussed in this article. This article is not to be copied or republished in any format for any reason without the written permission of the AdvisorNet Communications. The publisher does not guarantee the accuracy of the information and is not liable in any way for any error or omission.

What our clients are saying...

  • When working with a financial planner, my expectation is to work with someone who is responsive to changes and who can devise a path forward as we age for the benefit of ourselves and our children. I valued the depth of detail and explanation along with the disclosure of all the variables at play. I would certainly recommend Anthony to my family and friends!

  • I was looking for a financial planner who could provide clarity and show me the best possible way to structure and plan for my retirement. Anthony’s expertise was clearly evident. He is professional, punctual, and answered all my questions and concerns. I would definitely recommend Anthony to my family and friends.

  • We expect a Financial planner to be thorough, detailed and have a strong understanding of their clients' needs. It was a pleasure working with Anthony and his team. He delivered a tremendous package and reviewed his findings in great detail. Anthony's attention to detail, solutions, recommendations and in-depth reports provides a great deal of confidence in his recommendations. We would absolutely refer our family, friends and associates to Anthony.

  • I expect my financial planner to review and discuss my financial goals along with how my goals can be achieved. I valued Anthony reviewing my investments and the projections of what they will equate to when I reach my eventual retirement. Anthony has certainly met my expectations and I would be happy to refer my family and friends.

  • My expectation was to be provided with the best possible advice specific to my situation (as it evolves) and to be provided with objective, evidence-based solutions which will provide me with the maximum financial benefit (and peace of mind). I valued the very thorough process of gathering all pertinent information regarding my estate, pension, income and expenses in order to produce a very detailed and fulsome projection of my current and future financial situation. I really appreciate the time Anthony has taken to answer all of my questions and provide sound advice based on my goals and concerns. I am really looking forward to continuing my investment and financial planning journey with Anthony. I would certainly recommend Anthony to my family and friends!

  • We valued receiving a detailed report and explanation of our finances. When working with a financial planner, we expect to have our questions answered with adequate detail and to have a plan developed to help grow our money. Our expectations were clearly met and we would be happy to recommend Anthony to anyone looking for a Financial Plan.