Fiction: A trust automatically avoids probate.

Fact: Trust planning is becoming more and more popular in the U.S. because it is a creative way to pass along large assets to your descendants while hopefully avoiding a probate proceeding.

Without getting into too detailed a discussion about the different kinds of trusts available (because they may vary by state), it's important to note that having a trust will not automatically avoid a probate proceeding after death. The first step after you execute your trust is to re-title the assets that you wish the trust, vis-a-vis the trustee, to manage. If you pass away without re-titling all of your trust assets, then those assets that remain outside the trust will be subject to disposition according to your will, and a probate proceeding will be likely.


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