People who form living trusts for the sole purpose of avoiding probate are often sadly surprised. Here is just one example:
The Settlor lived in Washington and owned property in Nevada. He did up a living trust and provided in Schedule A that the Nevada property was in the trust. However, he did not record a deed in Nevada from himself to his living trust before he died.
The successor Trustee went to the Washington probate court and got an order that put the Nevada property into his trust. He then tried to record that order in Nevada public records, but recordation was refused on the grounds that a Washington Court cannot change title to Nevada property. Had recordation occurred, the title company would likely have excepted.Continue reading “Trusts can be probated. Common example.”