Is the Situs of a Trust Important?

The situs of a Trust — i.e. the location of its forming — may be a key element when designing an Irrevocable Trust, a Legacy Trust, a Self-Settled Trust or a trust that provides asset protection under a state’s common law or statutory law.

But for a basic Revocable Living Trust, the situs is less important.

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Is Any One States’ Laws Better Than Others for a Living Trust?

The primary purposes of a properly funded Revocable Living Trust is to avoid probate. If the Grantor’s real and personal property is properly transferred to the Living Trust, then such property is not subjected to the probate process upon the grantor’s death.

As such, the probate process — of Missouri, Nevada or any other state for that matter — becomes less important, given the fact that the probate process is by-passed by the use of a properly funded Revocable Living Trust.

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