<?xml version="1.0" encoding="UTF-8"?>				<article id="506213261"><artname>Trusts as an Alternative to Probate</artname><p><glossary def="1. In financial terms, a trust is a type of fiduciary agreement in which one person holds property for the benefit of another person. 2. A group of businesses illegally organized to reduce competition and control prices. 3. The willingness to rely on others. Every aspect of business requires trust so that systems may function smoothly. " primary="Trust">Trusts</glossary> are often used to avoid <glossary def="The legal process of proving the validity of a will and fulfilling its provisions. It involves obtaining official recognition of the testator (or appointment of the administrator by a court), filing paperwork, declaring validity of the will, and settling the estate." primary="Probate">probate</glossary> court and for a variety of other reasons. A trust is a creature of the law that can take legal ownership of one's property while one retains all the advantages and disadvantages of controlling and using it. If a decedent has placed property into the name of a trust, this property technically does not belong to him or her anymore. Therefore, <glossary def="Anything of value that a person or organization owns. Examples include cash, securities, accounts receivable, inventory, and property such as land, office equipment, or a house or car. (Compare with liability. The same item can be both an asset and a liability, depending on one's point of view. For example, a loan is a liability to the borrower because it represents money owed that has to be repaid. But to the lender, a loan is an asset because it represents money the lender will receive in the future as the borrower repays the debt.)" primary="Asset">assets</glossary> held by the trust are not subject to the jurisdiction of the probate court.</p><p>In addition to avoiding probate, trusts that also provide <glossary def="A payment to federal, state, and/or local governments based on the sales price of a product, on worker income, or on other property and activities." primary="Tax">tax</glossary> savings can be created. Trusts are not for everyone, but for those who can use a trust, they are very powerful <glossary def="The provisions one makes for the use/disposition of his or her property in the present and after death. For the disposition of assets upon death, a will is usually preferred." primary="Estate Planning">estate planning</glossary> tools.</p></article>	