When an individual dies without a living trust, his or her estate must generally go through a court-supervised probate. All wills go through probate if the size of the estate is more than a few thousand dollars. Probate can be a lengthy, expensive, public court process that can consume up to 8% of the assets of the estate, and can take up to several years to complete. When properly funded, a living trust avoids probate.
Occasionally, however, disputes between the trustees or beneficiaries of a living trust must also be adjudicated by the probate court. Litigation involving trusts and will can also be extremely expensive, and while most cases are settled before trial, the litigation process, discovery and the settlement process can also be lengthy and expensive. Ultimately, however, the courts are often the only available resource to resolve and rectify these kinds of disputes, inequities, and problems between trustees, beneficiaries and third parties.