My Parents had a Trust so I don’t need to Probate, but the Bank won’t let me access their bank account.

Trusts, Wills, and Probate: they go hand-in-hand.

Yes, a trust can help avoid probate – maybe. However, to avoid probate, all assets and property must belong to the trust. If there is any property that is not inside the trust (owned by the trust), then likely you will need to probate the estate to access that property. Any attorney who recommends a trust to a client will ensure that the client also has a Will. The Will is necessary to capture and handle any assets that were not included in the trust. Trust Will Probate

A classic example is a bank account. Let’s say “mom” has a bank account with Chase. Unless she named a beneficiary to be paid the balance of her account upon her death, then Chase is likely going to require mom’s beneficiary to go through probate to access the account. You may not even know just how much money is in mom’s account. This makes probate more risky. For example, if mom only has $500.00 in her account, do you want to pay filing fees (at least $400) and possibly attorney fees to get access to the $500.00? If she has $10,000.00 in her account, the answer is easy: yes, open the probate as the funds received will exceed the costs to access the funds. Often, the bank account is one of the common pitfalls of a trust – if the bank account is not part of the trust, it will likely require probate.

Overall, a trust can operate to prevent many, most, or even all assets from going through probate; however, it also requires diligence by the grantor to make sure that all assets are placed in the trust prior to passing. If any asset is missed, or not yet placed into the trust, then probate may still be required. Be aware too that trusts cost money. You’ll need an attorney to set up the trust. You’ll need a trustee to manage the trust. You likely will need a brokerage to handle funds for the trust. These costs will use up some of the trust funds over time. With a large estate, the assets of the trust can significantly outweigh the costs of the trust, and a trust makes sense. With smaller estates, you should consider a trust, but also consider alternatives that can also help avoid probate.

Also, be aware that Texas has a relatively straightforward probate system. It is less expensive than most states and generally fairly quick through the court process if there is a proper and valid Will that helps streamline the process. We can help you decide which is best for you.

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