Yes, trusts can avoid probate in Delaware. When you create a trust and transfer your assets to it, the assets are no longer subject to probate when you pass away. This can save your beneficiaries time and money by avoiding the often lengthy and expensive probate process.
The cost of setting up a trust in Delaware varies depending on the complexity of the trust and the attorney's fees. A basic Revocable Living Trust generally ranges from $1,000 to $3,000. More complex trusts can cost several thousand dollars more. Online services like Snug can provide a more affordable alternative to traditional legal services, offering estate planning services, including trusts, at a lower cost.
A Revocable Living Trust is the most common type of trust people set up, offering flexibility and control over your assets during your lifetime and helping to avoid probate. Other types of trusts, such as Charitable Trusts, Special Needs Trusts, and Irrevocable Trusts, may be appropriate depending on your specific circumstances and goals.
Funding a trust in Delaware involves transferring ownership of your assets to the trust. For real estate, a new deed must be prepared with the trust as the owner. Bank accounts should be retitled in the name of the trust, and other assets like vehicles, personal property, stocks, and bonds must also be formally transferred to the trust.
In Delaware, any individual who is at least 18 years old and mentally competent can serve as a trustee. Delaware law also allows for trust companies or banks to serve as trustees, provided they are authorized to exercise trust powers in the state. Trustees must be capable of managing and caring for property, and they must not have been convicted of serious crimes, particularly felonies or crimes that involve dishonesty or immoral conduct.
In Delaware, to modify your living trust, you'll need to prepare an amendment to the initial trust document. This amendment should clearly state the alterations you wish to make, such as adding or removing beneficiaries, changing trustees, or adjusting distribution directions. Be sure to incorporate your name, the name of the trust, the date the trust was formed, and the date of the amendment. Your amendment must be signed and notarized, just like your original trust document. If you're planning on making significant changes, you might find it more practical to draft a restatement of the trust. A restatement allows you to rewrite the whole trust while keeping the original date and title of the trust, thereby avoiding the need to retitle assets. Your restatement should include all the changes you want to make, effectively replacing the old provisions entirely.
