What type of trust can help Julian and Clara avoid probate for their real estate holdings?

A living trust is a legal arrangement created during an individual's lifetime where a designated trustee holds and manages the trust assets for the benefit of the beneficiaries. This type of trust is particularly beneficial for avoiding probate. One of the primary advantages of establishing a living trust is that, upon the trust maker's death, the assets placed within the trust do not go through the lengthy and costly probate process. Instead, they can be transferred directly to the beneficiaries, which allows for a more efficient and private distribution of assets.

In contrast, a testamentary trust is created through a will and only takes effect after the individual's death, meaning the assets will still need to go through probate before they are transferred to the trust. A land trust, while it provides certain confidentiality for real estate ownership, does not inherently avoid probate as it still functions under the decedent’s estate. An irrevocable trust, while it may provide some benefits regarding taxes and asset protection, similarly does not bypass the probate process for assets that are still part of the decedent's estate upon death. Establishing a living trust allows Julian and Clara to ensure their real estate holdings automatically pass to their designated beneficiaries without the need for probate, thus streamlining the transfer process.