Among the many forms available to estate planners, Wills are probably the document with which most people are familiar. Right behind that are trusts, which allow you to place your property and assets into one place where you may enjoy them during your lifetime and then be easily passed on to your beneficiaries when the time comes.
A trust becomes living when it is drafted, signed, and used while the original trustor is alive. The trustor is sometimes referred to as a grantor or settlor. As long as the trustor has capacity, he or she can maintain control over the property in the revocable living trust. While irrevocable trusts are a good option for many estate planners, there are three major benefits of having a revocable living trust, which we have outlined below.
- You may alter your trust while you have capacity. This is definitely the main draw of revocable living trusts. Your circumstances will almost certainly change sometime after you draft your trust, and the revocability allows you to alter your document as needed. The trustor can even dissolve the trust completely, if need be.
- Trusts allow you to avoid the probate process.Probate court is the setting in which judges divide property and assets of the decedent. The process can be time-consuming and expensive for your loved ones, not to mention stressful (especially if you have property in multiple states). If you have created a legally valid trust, however, the legal system will not intervene when you pass away; your trustee is empowered to distribute assets according to your wishes. In fact, trusts are not even required to be filed in court.
- Your beneficiaries will be given privacy when your assets are distributed. This benefit makes trusts an attractive estate-planning tool for celebrities and wealthy individuals, but you may certainly take advantage of this feature if you foresee any contention upon your passing. Wills, on the other hand, become public record upon their execution.
- Your beneficiaries will receive property and assets more quickly. As trusts avoid the probate court system, your loved ones will not have to wait around for a long time after your death to be awarded the assets you lay out. Instead of litigating your estate, your beneficiaries can spend time grieving and processing the situation.
Conclusion
Trusts are not an estate-planning tool reserved for the rich and famous. If you have any property or assets that mean a lot to you, you should consider using a living trust to secure those items for your loved ones. Revocable living trusts are particularly useful for individuals who foresee changes with their family or finances. If you are seeking legal guidance on whether or not a trust is right for your situation, please reach out to ProActive Legal Care today.
