A lot of attorneys recommend trusts to avoid probate. But there are ways to avoid probate without trusts.

WHat is a trust?

A trust is basically an agreement between two people to treat assets in a particular way (more or less). To read an indepth analysis about trusts click this link.

Trusts do not go through the probate court when you die, unlike wills. For that reason trust distributions can be made immediately upon death instead of waiting for the probate period.

how much does a trust cost?

Trusts typically cost substantially more than wills to create. Firms draft trusts from prices between $2,500 to $10,000. This is because trusts can be lengthy documents that take a lot of time to draft and there are certain additional considerations to keep in mind as opposed to drafting a simple will.

Is a trust the only way to avoid probate?

No!

Depending on which assets you have there are other options available to avoid probate.

Common (free) trust alternatives that avoid probate

1. Joint ownership. If you own a bank account jointly with a friend or spouse that bank account will avoid probate when you die. You can also own cars and property jointly too. They will also avoid probate.
   
2. Beneficiary designations. Many banks offer “payable on death designations.” Ask your bank if they offer this service. It’s a free way to designate someone as your beneficiary when you die. Once you die your beneficiary named on your account will contact the bank, show them your obituary and death certificate and the bank will disburse funds to them.
   
   You can also do this on stock accounts and IRA and 401K accounts. And it’s free!
   
3. Gifts. Gifts avoid probate. You don’t have to wait to die to show your family or friends some love. If you have assets you want your family and friends to have you can always gift them some of your estate in this lifetime.