What is the key advantage of a living trust compared to a testamentary trust?

A living trust offers a significant advantage over a testamentary trust primarily by allowing for the transfer of ownership before death, which helps to avoid the probate process. This is crucial because probate can be a lengthy and costly process through which a deceased person's assets are distributed. By establishing a living trust, assets are placed into the trust during the grantor's lifetime, which means they can be managed and distributed according to the terms of the trust without having to go through probate upon the grantor's death.

Moreover, avoiding probate can simplify the transition for beneficiaries and provide a level of privacy regarding the assets, as living trusts are not part of the public record, unlike wills which become public documents once they are probated. This feature can also expedite the distribution of assets to beneficiaries, making it easier for them to access their inheritance swiftly.

The other options do not accurately represent the key advantage of living trusts over testamentary trusts. While public records and court approval might be relevant in discussing wills and other forms of trust, they do not pertain to the main advantage of living trusts. Additionally, living trusts are not limited to just real estate; they can encompass various types of assets.