If you’re in the process of creating your first estate plan or updating what you already have in place, you may be familiar with a revocable living trust. But if you’re not, there’s no better time than now to learn more.
Here’s how we describe a living trust on our website:
A trust is a relationship wherein property is held by one party for the benefit of another. A trust is created by a Settlor (also referred to as a Maker or Grantor), who transfers property to a Trustee. The Trustee holds that property for the trust’s beneficiaries. As the Settlor of the trust, you create the trust terms that are used to direct the administration of the trust.
Adding to the above, the term “revocable” means that you can get rid of or alter your living trust at any time. You remain in complete control.
Now, let’s move onto some of the many reasons to consider the creation of a revocable living trust:
- Privacy protection: Unlike a will, the terms of a revocable living trust — such as its beneficiaries — are not made public. This allows you to maintain a high level of privacy, even after you’ve passed.
- Avoiding probate: A will must go through the probate process, which can be both costly and time consuming. Furthermore, it opens up the possibility of a will contest. This can cause unnecessary stress on your loved ones at an already difficult time.
- Incapacity planning: A trust will kick in if you’re incapacitated, thus ensuring that your wishes are carried out despite the fact that you can’t communicate them.
If you’re intrigued by the benefits of a revocable living trust, learn more about how to create this legal document. When you contact our law firm, you’ll have access to a team of experienced legal professionals who can show you the way.