A revocable living trust can be set up to receive royalty payments for mineral rights from property in Washington County, PA and surrounding areas.
Control Over Their Affairs
Those who like having control over the royalty payments from their mineral rights may prefer managing their assets with a revocable living trust. They want to avoid the expense, delay, and loss of control over their property, and the income derived from it, if they become incapacitated or die.
Typically, both spouses are the original Trustees and manage the assets held in the name of the trust. As time goes on, a child or another person can be named as a Co-Trustee to serve with the original Trustee(s) to assist with managing the affairs of the trust, such as with paying bills, etc.
Drawbacks of Probate
If the property is owned jointly rather than in the name of a living trust, the property will have to go through probate after the survivor dies.
With a living trust, the Successor Trustee(s) will take over and manage or distribute the assets of the trust after the incompetency or death of the original Trustee(s) avoiding both the cost and time involved in the probate process.
The Trust Owns the Real Estate
A living trust makes it possible to avoid probate if the living trust owns the property or real estate that contains the mineral rights.
The original Trustee still controls the trust and the assets it owns and can receive royalty payments as beneficiary of the trust.
Since the trust owns the property and not a person, there is no need for probate.
If you own real estate in Washington, PA that contains mineral rights, it pays to learn how a revocable living trust compares to other estate planning options.
The Bottom Line
A living trust makes it possible to avoid probate if the living trust owns the property or real estate that contains the mineral rights.
So, a living trust works only if it is funded properly – meaning that title to the property has been transferred to the trust.