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Probate court is what is used by the government to execute a deceased person's estate, to give out the assets to the appropriate heirs. After a person's passing, a will becomes public record, assets are taxed, and lawyers are involved the whole time. This process can take up to three years and cost up to 10% of your total estate. In most states, it is possible to avoid this period through something called a living trust.
When you create a District of Columbia living trust, you create a legal entity separate from yourself. You then become what is called a "grantor" by transferring ownership of your major property to this entity. You still retain control of your assets, since grantors usually appoint themselves the initial trustee. When you pass away, you personally do not lose ownership of your assets, since they are owned by the trust. Instead, the trust gives control over assets to your designee.
While setting up a living trust takes more planning and can be more expensive than a traditional will, it is a very effective estate planning tool. Living trusts can help your heirs avoid certain estate taxes if prepared properly. Additionally, a living trust allows you to hand over management of your assets to someone else if you become unable to manage your assets yourself.
If you'd like more specific information about the rules and regulations which govern District of Columbia living trusts, check out LegalZoom's free, online legal library. There, you can learn about what a District of Columbia living trust can do for you.
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