Is A Revocable Trust Worth It?
As you get older, you may be thinking about death a lot more. What will happen when you die? How will your assets be distributed?
There are a lot of things to think about. You have several options, including wills and trusts. Wills are pretty basic and while they’re adequate for those who have every few assets, they still require the probate process. Probate is the process of proving to the court that the will is valid.
This may not seem so bad, but probate is a lengthy and complex process. In fact, one of the biggest concerns is the amount of time it takes.
That’s why many people choose trusts instead. There are revocable and irrevocable trusts. While irrevocable trusts offer more protection, they cannot be changed at all. Once the documents are signed, they become final. This means that if there are changes to assets or beneficiaries, you cannot make any changes. On the other hand, a revocable trust can be changed and updated as needed.
A revocable living trust outlines how your assets will be handled after your death. Assets may include things such as bank accounts, property, and investments. This is a living trust, so you create the document while you are still alive. Then, after you die, your assets are transferred to your beneficiaries according to the terms outlined in the trust.
Many people choose revocable living trusts because they avoid probate. This is because the trust remains intact after your death. This allows you to decide who should receive your assets.
Here are some other benefits of a trust:
- It protects your privacy. If you go through probate, it becomes public record. This is not the case for a revocable living trust, since it is not subject to probate.
- Protection in the event of incapacitation. When a person becomes chronically ill or disabled, it becomes difficult for them to act on their own behalf. This can result in guardianship or conservatorship that takes control of your assets. A revocable living trust allows you to select a successor trustee who assumes control of your assets in the event of incapacitation.
However, there are no tax benefits associated with a revocable living trust. This type of trust requires a lot of work because you have to retitle assets appropriately. In some cases, it can also be expensive. Discuss your situation with an estate planning lawyer.
Seek Legal Help
Trusts are good ways to protect assets and ensure they are distributed as intended. They can help prevent probate issues as well.
If your loved one has died without an estate plan in place, or your family members are at odds, contact Fort Lauderdale probate litigation lawyer Edward J. Jennings, P.A. He understands the laws and can help resolve your dispute. Schedule a consultation today by filling out the online form or calling 954-764-4330.