How does a trust avoid probate?

A trust establishes an individual’s rights to real or personal property which is held in a fiduciary relationship by one party for the benefit of another. The trustee is the one who holds title to the trust property, and the beneficiary is the person who receives the benefits of the trust.
A trust is a form of property ownership. The individual who sets up a trust is called the “grantor” or “settlor.” The trustee is the “legal” owner of the trust property, and their name is on any document of title. The beneficiary is the person who receives the benefits of ownership, such as the right to receive the income from the trust’s investments.
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A “living” or “inter vivos” trust is one that is set up and funded while the grantor is alive. Usually, the grantor names themselves as both trustee and beneficiary. In contrast, a trust which comes into being under the terms of a will, after the grantor’s death, is called a “testamentary” trust.
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When an estate is conveyed through a Will, the probate court must validate the Will before its provisions can be executed. The probate process can require up to two years. Assets held in a Living Trust, however, are not subject to probate. The advantages of avoiding probate are several.