Benefits of Trust vs. Probate

Trust Administration can be less costly than Probate

Missouri Probate Code, Section 473.153 provides the fees due to lawyers and personal representatives of a Missouri probate estate.  This section of the Missouri probate Code calculates the statutory fees due to attorneys and personal representatives based on percentages of the inventoried assets of the probate estate (i.e., the value of the estate).   For the first $5,000 of an estate, the attorney receives a minimum of 5 percent. For the next $20,000, the attorney receives four percent, for the next $75,000 it is three percent.  For the next $300,000, the attorney receives 2.75 percent and 2.5 percent for the next $600,000.  Any balance over that amount up to $1 million, the attorney receives 2 percent.  As an example, if a probate estate consists of liquid assets of $175,000.00 (money in bank accounts, investments, etc.), the attorney’s statutory fees would be approximately $5,360.00.  

The personal representative is also entitled to the same statutory fees of approximately $5,360.00.  The estate is also responsible to pay court costs such as filing fees, inventory fees (“court costs”), along with other probate professional fees such as required publication costs.  Therefore, the total fees and costs (attorney’s fees, personal representative fees, court costs, publication costs) for a probate estate of $175,000.00 would likely be over $11,000.00. This amount must be paid from the estate prior to distribution of any assets.  

Unlike a probate estate, attorneys typically bill on an hourly basis in the administration of a trust estate.  The hourly costs for a trust administration could be significantly less than probate for most estates.  This could potentially result in a greater portion of your estate passing to your beneficiaries.    

Trust can be administered faster than Probate

Depending on the size of the estate, the probate process in Missouri may take 12 – 24 months to complete.  A probate estate in Missouri with a value of more than $40,000.00 will require a more formal process.  In such probate estates, the probate court allows creditors six months to file a claim against an estate.  After the six-month creditor period, the estate goes through a closing process which may require court approval before finalizing.  Because of this process, many families wait up to a year and a half, or longer, to receive their inheritance.  

An efficient trust administration process may avoid such time delays before transfer, and significantly accelerate the transfer of an estate to your named beneficiaries.

Probate is public; Trust Administration is typically private

When an estate goes through the probate process, it becomes a part of Missouri court record.  This means your Last Will and Testament and your financial information can become public. The beneficiaries you named to receive your probate estate can also become public.  You may not want your private affairs, including your estate plan wishes, to be open to the general public. The trust administration process allows you to keep details about your estate, including the value and beneficiaries of your estate, private and closed to the general public.