What type of trust allows real estate owners to distribute the owner's estate without probate?

A living trust, also known as an inter vivos trust, allows real estate owners to manage and distribute their estate during their lifetime and after their death without the need for probate. This type of trust is created while the trustor is still alive, allowing them to maintain control over their assets and make changes as necessary.

One of the primary benefits of a living trust is that it bypasses the lengthy and often costly probate process, which is the court procedure required to validate a will. This can provide a smoother transition of assets to beneficiaries, ensuring that they receive their inheritance promptly and with reduced expenses. Additionally, a living trust maintains privacy, as the assets held within it do not go through probate and become public record.

In contrast, an irrevocable trust cannot be modified or revoked once established, making it less flexible for estate distribution. A simple trust typically generates income that must be distributed to beneficiaries, whereas a testamentary trust is created through a will and only takes effect upon the trustor’s death, thus requiring the probate process to be initiated.