Revocable Living Trust/Revocable Trust
Estate planning brings a lot of responsibility on the part of the owner and personal representative of the will. Don’t you think it is important for the beneficiaries to know how to manage the inheritance? Wondering how to do it? There is one solution that allows owners to exert direct control over the property when they are not there. It is done with a revocable living trust also known as a revocable trust.
The Key Points
A revocable trust is a legal document set up by an estate planning attorney with you as the “trustor” or “grantor”. It is revocable because it can be changed over time. These are used to avoid probate and keep the privacy of the owner along with the beneficiaries of the trust. After the trustor dies, the revocable trust also provides asset protection for the beneficiaries. In addition, it allows the trustor to determine when a beneficiary will receive a certain portion of the assets.
Revocable Trust- Creation
The trust is created by writing an agreement that legally appoints a successor trustee to look after and administer the trust after the initial trustee (usually the trustor) dies. As a creator of the document, you can choose any competent person as the trustee. Some people prefer to select a company as the successor trustee.
After you have chosen the trustee and have named the beneficiaries, the next step is correctly placing assets including bank accounts, investments, and real estate into the trust. After this, the assets belong to the trust, which lives beyond your death. Thus avoiding the probate process after the death of the trustor. To put in simple words, a trust is a rule book for how to manage and transfer the assets and avoid probate.
Benefits of Revocable Living Trust
The avoidance of probate is the major advantage of establishing a good and legal revocable trust. But there are some benefits like protection of privacy and flexibility makes a revocable trust an ideal choice.
● Eliminate Probate- it is a simple process of transferring property when the trustor dies which speeds up the process instead of taking months or even years of probate.
● Flexible in nature- you can change the trust document whenever you want
● Protect privacy- if you want to keep all your asset data private, a revocable trust is a great option. Even after your death, nothing will be revealed as it would be in probate.