What is the fate of property in a living trust upon the individual's death?

The fate of property in a living trust upon the individual's death is that it passes according to the terms of the trust. This is a fundamental characteristic of living trusts, which are designed to allow assets to be managed during the grantor's lifetime and distributed according to their specific wishes after death without the need for probate.

When a person establishes a living trust, they transfer ownership of their assets into the trust. This process allows the trust to dictate how the assets should be handled and who will receive them once the grantor passes away. Because the assets are already owned by the trust, they are not subject to probate, which is a court process that can be lengthy and costly.

Understanding this process is essential for estate planning, as utilizing a living trust can streamline the transfer of assets and ensure that the grantor's wishes are followed precisely.