When a person dies, any asset acquired or accumulated during life by the decedent, cash, securities, real property and so on is transferred to persons named in his/her will or who is entitled to take ownership thereof under law of intestacy(when no will is left). Probate is a legal proceeding in which the final financial affairs and asset conveyance to beneficiaries of a decedents estate is presided over by a court of law. A will does not avoid probate. In aggregate, the probate filing fees, lawyer fees and statutory fees involved with the probating of an estate can consume a sizeable chunk (10-20%) of a decedents liquidated assets. In most states, an estate with a value of $100,000 or less is handled through “small estate law”outside of probate court, and at much less expense. However, there is a legal instrument (a legally executed written document) which avoids probate or small estate law procedures altogether called a revocable living trust. A trust is basically an entity created by a grantor(s)/trustor(s) (person(s) establishing a trust) who via instrument (trust deed/agreement) transfers and assigns property to a trust entity- this entity is like a corporation having its own identity independent of the trustors. The trustor(s) also or usually become the trustee(s) for the trust giving them full and exclusive fiduciary control over the use and transfer of assets deeded to the trust, as well as the right to any income generated by the assets held in trust. In this way, the trust passes all of its income to the trustees who report that income on their personal income tax returns, avoiding the necessity to file separate income tax returns for the trust entity. The trust instrument also names successor trustee(s) who will assume management and fiduciary responsibility for the trust when the last remaining grantor trustee becomes deceased. A properly constructed trust will also provide for the successor trustee to take over management of the trust in the event the living trustor(s) becomes incapacitated, avoiding court appointed conservatorship. In the case of a trust involving substantial asset value, banks, attorneys and trust administration firms may also be appointed as successor trustees. In the case of a joint marital living trust, also referred to as an A/B living trust, when one spouse passes the serving spouse becomes the automatic successor trustee. It is also noteworthy to mention here Category:Home › Other • Pomegranates: A newly discovered superfood • Where did the joke why did the chicken cross the road come from and why is it funny? • Can mothers diagnosed with bipolar disorder make good parents? • Spiritual evolution of human consciousness • Tips for getting a college basketball scholarship • Living with Pseudotumor cerebri (PTC) • Caring for the caregiver • Technologys impact on society