Assets owned solely by an individual at the time of their passing, and not held within a trust, become part of the deceased’s probate estate. This estate is subject to court-supervised distribution according to the deceased’s will, or state intestacy laws if no will exists. For example, a personally owned house, vehicle, or bank account would typically fall into this category if not designated otherwise.
Managing inheritance through a trust can offer several advantages compared to probate. Trusts can avoid the often lengthy and public process of probate, potentially reducing costs and delays for beneficiaries. They can also provide greater control over how assets are distributed and managed, especially for complex family situations or when beneficiaries are minors or require ongoing financial assistance. Historically, probate laws evolved to ensure fair distribution of a deceased’s belongings in the absence of clear instructions, while trusts emerged as a more flexible and private method of estate planning.
