The Benefits of a Revocable Trust: Is It a Good Fit For You?
A revocable trust, also known as a living trust, is a trust that you create during your lifetime. With a revocable trust, you have the option of naming yourself as trustee, effectively maintaining control over your assets during your life while also controlling how assets will be distributed at your death. There are three primary benefits of revocable trusts that wills do not provide; (1) a well-funded revocable trust helps minimize probate, (2) a revocable trust allows you to control when and to whom your property should be distributed while providing a level of privacy that wills do not enjoy, and (3) revocable trusts provide certain management benefits while you are alive, allow you to revoke the trust at any time before your death, and are often easier to amend than wills.
Revocable Trusts Avoid Probate
Revocable trusts can achieve many of the same goals as a will without the need to go through the probate process. Probate can be a long and drawn out process. Assets placed in a revocable trust avoid probate allowing the assets that you have designated to be distributed much faster than would be the case under a will. In addition, using a revocable trust to minimize probate assets can save the estate many of the legal fees associated with the probate process.
Revocable Trusts Provide Control and Privacy
Revocable trusts allow you, as trustee, to control your assets during your life and also control how your property should be distributed when you die. Revocable trusts also protect your privacy because, unlike wills, revocable trusts are not publicly recorded. A probated will becomes public record, which means that the asset distributions become public as well. Revocable trusts, on the other hand, are not public record, allowing the content of the trust to remain private.
Revocable Trusts Provide Benefits While You Are Alive
Revocable trusts are often easier to amend than wills and provide you with financial management flexibility. A revocable trust allows you to designate a successor trustee to handle your finances should you become incapacitated or otherwise incapable of making financial decisions. The successor trustee could be a spouse, trusted advisor, or professional trustee. This ensures that you and your loved ones are financially cared for in the unfortunate event that you suffer a serious health condition. Furthermore, revocable trusts are flexible, allowing you to amend or terminate the trust based on your changing financial needs.
Ask an Attorney if a Revocable Trust is a Good Fit For You
A revocable trust provides many benefits that give you control and flexibility over your assets and who will receive your assets at your death. An attorney can help you decide whether a revocable trust is a good fit for you and ensure that the terms of the trust maximize these benefits. The attorneys at Long Knight, P.C. are experienced in the realm of trust and estate law, and would be happy to help you navigate the process of creating a trust or will that best serves your needs.