ESTATE
PLANNING & PROBATE
Revocable Living Trust
You have
likely heard much about Revocable Living Trusts. In fact,
you likely learned about these Trusts from a friend or
family member. Revocable Living Trusts have become a very
popular estate planning vehicle, and have become the
cornerstone of most modern-day estate plans.
A
Revocable Living Trust is like a wooden chest into which you
place all of your real and personal property. You continue
to own all of the property placed into the chest, and you
can add and remove any and all property at any time and for
any (or no) reason. You can even cancel or revoke the Trust
at any time (that’s why it’s called a “Revocable Living
Trust”). You retain complete control over all
property in the chest. Thus, you can use, gift, sell,
transfer, or otherwise dispose of all of the property at
your sole discretion.
While you are alive, you
will notice no difference in the use and control over all
property placed into the Trust. Once the Trust is created and
funded, there are no special forms to complete, you do not have
to maintain records or inventories of the property in the Trust,
you do not have to file tax returns for the trust, etc. You
simply place your property in the Trust and then keep living
your life as though nothing has changed.
So why create a Revocable Living
Trust? To remove what could otherwise be a huge burden on your
family and loved ones. You create a Revocable Living Trust for
the benefit of those you love. A Revocable Living Trust
provides the following benefits:
1. Avoids
probate, which can save your family thousands of dollars in
attorney’s fees and court costs and will preserve and protect
the privacy of your financial affairs which would otherwise be
part of the public record and open to everyone.
2.
Eliminates unnecessary taxes, thereby ensuring that more of the
earnings of your lifetime of hard work goes to your loved ones
and not to the government.
3.
Eliminates the delay in transferring your assets to your loved
ones.
4. Eliminates
guardianship if you become incapacitated and unable to manage
your own affairs (you can appoint a loved one to take charge of
your financial and personal affairs, thereby avoiding expensive,
time-consuming, public, and potentially embarrassing legal
proceedings).
5. Ensures
that you retain complete control over every aspect of your
property.
6. After
your death, the Trust continues to provide for the management of
your assets according to your terms, and it can provide creditor
protection to your spouse and children.
7. Provides
you with the peace of mind that comes with knowing that your
affairs are in order and that your property will pass promptly
to your loved ones without unnecessary delay and expense. In
sum, your efforts now will relieve your family of enduring
substantial hardship and expense at the time of your
incapacitation and/or death.
