Key Benefits of a Revocable Living Trust
If you have assets and people you care about, you should strongly consider preparing a revocable living trust. Revocable living trusts are not just for the wealthy or for those who have complicated holdings. In fact, a revocable living trust can provide a great benefit to most individuals and families.
The main reason you will need a trust is for your loved ones to avoid probate after you die.
Revocable living trusts avoid probate by ensuring that the assets placed into the trust are
transferred directly to beneficiaries after you pass away, without needing to go through the court-supervised, expensive, and lengthy probate process. By avoiding probate your assets after you die could be managed and distributed in a much more efficient, faster, private, and less expensive process.
Even before you die, your revocable living trust would be easy to manage. Another key benefit of a revocable trust is the control it provides during your lifetime. As the grantor, you can manage the assets, change the terms, and modify beneficiaries as needed. This flexibility allows you to adapt to changes in your life without losing control of your estate.
Revocable living trusts are simple to use. The same skills and expertise that you use to manage your assets outside of a revocable living trust are the same that you would use if your assets were placed in a revocable living trust. Having a revocable living trust does not complicate your ability to manage your life.
In addition to avoiding probate, a revocable trust offers privacy. Unlike a will, which becomes public during probate, a trust remains private, keeping the details of your assets and beneficiaries confidential. It also helps ensure continuity in the event of incapacity, as the successor trustee can manage your affairs without the need for court intervention.
Finally, although there may be some upfront costs involved in creating a revocable trust, these can often be offset by the savings in legal fees and court costs that would arise from the probate process. It also allows for more detailed planning regarding how and when your assets are distributed, giving you greater control over the future of your estate.