A revocable living trust is a tool used in estate planning to help a person manage them both in this life and even beyond. This means that your assets will be protected even when you are ill and when you pass away. You will have given those left behind some stability as it relates to your estate.
Revocable living trusts and wills
The first thing you should note is that a trust replaces the function of a will. The best thing about it is that there is no obligation for the document to be filed in a probate court. This is highly ideal since it gives the beneficiaries a higher degree of privacy, considering the fact that there is no public record in place that shows all the assets that they own. You can still have a signed will and have it consist of all of the assets that have not been incorporated into the trust.
What is entailed in a revocable trust?
The revocable living trust can be described as an entity into which an individual can move their assets. This means that the assets then become the property of the revocable living trust instead of the individuals. The function of the revocable living trust is to provide a platform where a person can transfer their assets, making it easier for the assets to be easily and quickly distributed when the time comes. This type of trust takes effect as soon as it’s drafted and that’s why the term “living” is used. The opposite of this type of trust is known as a testamentary trust and is executed once a person passes away.
The good thing about a revocable living trust is that it can be altered at anytime. They are not a fixed entity that restricts a person to the only options they chose to start with. They can also be dissolved. It should be noted that this can only be done if the owner of the assets is competent and sane. You should not worry about revoking a person’s right to the trust since it can be done in discretion and only you and the lawyer will know about it.
A revocable living trust is an estate planning tool most should at least consider. It will come with a cost from an attorney, but in the end the benefit should far outweigh that cost. Before making any decisions, please consult with an attorney.