One of the most common types of trusts that people use in estate planning is the revocable living trust. This type of trust is popular because of the benefits it provides to families, and you should consider creating one if you do not have one yet. Here is an explanation of what a revocable living trust is, as well as the benefits it provides to families.
The Basic Features of a Revocable Living Trust
In estate planning law, a trust is something you create that you place your assets in for protection. The trust is like an entity that holds title to your things, and when you choose a revocable trust, it means that you can make changes to the entity whenever you would like. When a trust is a "living" trust, it means that you create it while you are alive and have the right to manage it during this time. You can place everything you own in the trust, or you can limit what you put in it. When you die, the things in the trust transfer to the beneficiaries that you name.
The Benefits It Provides to Families
You do not have to create a trust to pass your assets to your family members, but trusts offer a lot of benefits compared to other options. The first benefit of a trust is that it makes the transfer of assets smoother, faster, and easier when you die. A trust is a highly respected tool in estate planning. If you want your family members to have few problems and challenges after your death, a trust can help.
Secondly, when you place assets in a trust, there is no question about where they should go when you die. You would include written instructions about this in your will, and your family must follow these directions. Your family likely will not have to go to probate court for answers or decisions, which means they will save time and money.
One more benefit of a revocable living trust is that it is private. If you do not want people to know about your wealth when you die or who you gave your things to, no one will know if you use a trust. A trust is a private matter that does not get recorded in public knowledge.
Would you like to find out if this tool is right for you? If so, contact an estate planning attorney to discuss your options.
