Use a Revocable Trust in Your Estate Plan
The estate planning attorney has served clients for years and is aware of the common estate planning problems people face. While some may be more concerned about retirement, avoiding probate and estate taxes in order to leave optimum funds to their surviving loved ones, others may be more concerned about protecting their assets when they grow old and weak, and ensuring that their assets are passed on to their heirs in the simplest and smoothest way possible. Whatever the case may be, the estate attorney is highly knowledgeable in estate matters and knows just what tactics and resources to use to give you your heart’s desires for your assets. One of these very important tools for estate planning is revocable living trust.
The Revocable Living Trust
A revocable living trust is most commonly referred to as a revocable trust or a living trust. This agreement gives you the freedom to transfer assets after death, and even during your lifetime, much faster and easier than a will. If you create a living trust and fund it with assets, you name a trustee (you can name yourself as your trustee, but you must also name a successor trustee) who will control the assets in the trust and pass them on to your heirs if you die, or even while you live.
There are many reasons why the estate planning attorney may suggest using a revocable living trust in your estate plan because of the many benefits which it offers.
Benefits of Using a Revocable Trust in Your Estate Plan
1. Revocable trust avoids probate
This is one of the most notable reasons why revocable trusts are preferred over wills. Once you create a revocable trust, you can transfer all your valuable possessions, bank accounts and real estate into the trust. Once transferred, they take up the name of the trust and hence, those assets will not go through the complex and expensive process of probate. This will also make your asset transfer private, quick and hitch free. On the other hand, assets distributed with wills will go through probate since such assets are in your name.
2. Offers flexibility
Revocable living trusts are very flexible. As the name suggests, this type of trust is revocable, that is, can be cancelled or have its terms changed at anytime as the Grantor (creator of the trust) so desires. This is as opposed to irrevocable trusts. Many things can make you decide to alter the terms of your trust or revoke it. You might acquire a new property which you want to include in the trust; you could also need to make use of the funds which you’ve already transferred into the trust, hence you would need to remove those funds from the trust.
3. Gives you asset protection before death
With a revocable living trust, you do not have to worry about your assets when incapacitation hits. Your trustee automatically takes over your estate affairs without having to go through Guardianship hearing or Conservatorship, and he is bound by law to act in your best interests. In the terms of your living trust, you can also lay down instructions on how your minors should be provided for with your assets.
4. Offers cost savings
Although revocable living trusts are more expensive to set up than wills or normal irrevocable trusts, you would be rescued from the headaches, time and costs of probate in the long run. When you contest a provision, creating a revocable living trust can even save more time and money.
Contact an estate planning attorney near you
As have been seen, there are many reasons why you should consider creating a revocable living trust. However, this trust doesn’t give you any estate tax advantage as an irrevocable trust does, because the assets in the living trust are still considered to be yours. There are upsides and downsides to trusts and wills, and getting an estate planning lawyer near you should be your next critical step in discerning the best way to go about your estate plan. Get the best personalized legal services today. If you’re living anywhere within and around area code 10024, contact the estate attorney NYC.