A revocable living trust is a popular estate planning tool because it offers many benefits. If you’re thinking about using this planning tool, take a look at the following information to learn about a revocable living trust. If you have any questions, or if you’d like to create a trust, contact an estate planning attorney.
- You can avoid probate. Avoiding probate saves time and money and keeps your affairs private. Your revocable living trust must be fully funded for probate avoidance. This means that all of your assets that would otherwise go through probate must be titled in the name of your trust (not your individual name.)
- You can control your trust during your lifetime. Having full control makes it possible for you to make changes to your trust document as needed,as long as you have the requisite legal capacity to sign legal documents. In addition, you maintain full control of all of your assets.
- You have the ability to prepare for incapacity. With a revocable living trust, you can decide who will manage your trust’s assets should you become incapacitated. This makes it possible for your financial affairs to always be in order.
- Your beneficiaries can receive their inheritances more quickly. Since assets won’t pass through probate, beneficiaries won’t likely have to wait a long period of time for their inheritances.
- Your trust can be used during your lifetime and after your death. Unlike a will, a trust is effective immediately.
- It’s hard to contest your trust. Many people create a revocable living trust to ensure that their wishes are respected. Will contests are much more likely successful than trust contests.
Work with an attorney to ensure that your revocable living trust’s affairs are in order and you take advantage of these benefits. If you’re ready to create a revocable living trust, consult with a qualified estate planning attorney.