Using a living trust to avoid probate on real estate

Attorney Tom Olsen: Holley, we know from experience that, first of all, we offer to review people's trust for free.

Attorney Holley Knapik: For free. Absolutely.

Tom: If you've got to trust out there folks that's sitting in a desk drawer somewhere, pull it out Olsen Law Group lawyers will review it for you for free. You can drop it by, fax it, email it, schedule an appointment to see us. We'll review it while you're here and tell you what's working and what's not. We might very well say that your trust is just fine, but guess what? Your trust doesn't own your assets.

Holley: Your assets. It's always a two-step process. I like to say that to a client when I'm meeting with them. You did the first step, you created the trust, now you have to do the second step, which we were just discussing with Nick. You need to fund the trust. Meaning, your trust needs to own your assets in order to avoid probate. Then within your trust, typically you have something called a plan of distribution or trust distribution upon the grantor's passing which dictates how the assets are to be divided if there's kids, grandkids.

That's where you'll find that language, so to speak, stating how the assets will be divided.

Tom: Most people think in terms of having a will dictate how the assets get divided, but if you have a living trust, how your assets are divided or within the living trust itself. Yes, exactly. It is not unusual for kids to inherit a piece of property and not agree on what's going to happen with it.

Holley: Absolutely. One kid may decide, "Let's keep it. I want to rent it." Another kid says, "No, I want my money. I want to get rid of it and get out."

Tom: I did a living trust recently where the dad knew that this was going to be an issue. I think he had six kids and so in his trust he specifically put language that says, "I hereby direct when I pass away, I direct my trustee to sell all these properties, convert them to cash, and split the money up between the kids."

Holley: Yes. I've done that now a few times myself because the parents know there will be a fight.

Tom: It's not something I recommend lightly, but when he knew what his kids were, because realistically that when dad passes away, "Hey, it may not be the best market to sell properties," but yet that's what his trust is going to say. Folks, we'd be happy to help you with your living trusts. Just call the Olsen Law Group anytime. There's many lawyers here that you can choose from to assist you. Hey folks. My name is Tom Olsen. The name of the show is Olsen on Law.

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