When engaging in estate planning and wealth preservation efforts, you will undoubtedly be told about revocable living trusts as one of many options available to you. This particular type of trust offers a variety of benefits that can't be found with wills, irrevocable trusts, or other options, which is why they are so popular. Learn about some of the specific benefits of this option to see if it is a good choice for your situation.
Helps Protect Your Privacy
A revocable living trust is a private document, which means you can maintain your privacy in many important ways. Wills and many other documents become a matter of public record when you die and they enter probate. Most people would rather not have this type of information on record, and it can also cause problems for your heirs in some cases. The contents of your estate, and who you leave things to, is really not anyone's business but your own, so it this can be a significant benefit for many people.
Minimize or eliminate the Need for Probate
When you pass away, your will has to go through probate court, which can be quite costly and time consuming. A revocable living trust, on the other hand, does not need to pass through probate to become effective. This can save your loved ones a lot of time and money in many cases. Even if you own property in multiple states, you can avoid what is known as “ancillary probate” since all of these assets will be contained within the same trust.
When you place assets into a revocable living trust, you do not give up control over them. You can continue to buy, sell, and transfer assets within this type of trust just like you could if the assets remained directly in your name. This is especially important for people who want to continue managing their investments and other assets long into the future.
Ideal for Beneficiaries Under the Age of 18
If you have minor children, or an adult child who you still need to care for due to a disability, a revocable living trust is a legal tool you can manage for them without any extra costs or restrictions. You can also specify that assets do not transfer to your child until they reach a different milestone. Since not all children are mature enough to handle an inheritance at the age of 18, you can stipulate that they don't gain control of the assets until they are 25, or until they are married, or some other time that you designate.
Increased Protection of Assets
Assets contained in a revocable living trust can be protected against certain judgments, lawsuits, creditor claims, and more. While there are still ways that certain creditors, such as the IRS, can make claims against these assets, it is much less likely when they are protected in this way.
We're Here to Help with Your Revocable Living Trust
If you still have questions about a revocable living trust, or you would like to get one set up, please contact The Tyra Law Firm. We will be happy to discuss your specific situation, and get everything setup properly for you.