Brandon Revocable Living Trust Attorney
When thinking about estate planning, there are several options to choose from. While many people choose wills because they are cheaper and easier, they don’t always provide all the protections that a person wants. They may want to exert some control over their money and assets when they die.
A revocable living trust can help in this regard. This type of estate planning document can be updated over time, as the person’s assets change. Unlike a will, it requires a trustee to distribute the assets upon the person’s death. A trustee can be a competent adult that you know and trust or it can be a bank or financial institution.
Once you set up the trust, you place your assets into it. This includes bank accounts, real estate and investments. Those assets now belong to the trust, so when you die, you can bypass the probate process. The trust essentially details how your assets are to be handled in the event of your death.
However, you still have control of the assets and you can change the trust at any time. The assets just don’t transfer to your beneficiaries until you die.
Pros and Cons
A revocable living trust offers many advantages, such as the following:
- Ability to avoid probate. With a will, you have to go through probate, which is a long and costly process. You can avoid probate with a will since you don’t own the assets—the trust does.
- Flexibility. You can change a revocable living trust at any time. You can add or remove assets or change beneficiaries.
- Preserve your privacy. Wills and probate are public knowledge. A trust, on the other hand, keeps everything private.
- Assign guardianship or durable power of attorney. A living trust can be used to control how assets are spent, particularly money. It can also authorize someone to make medical decisions for you should you become incapacitated. If you become disabled, the trust can appoint your trustee to oversee your financial affairs.
There are some downsides to a trust as well, such as:
- Expensive. A revocable living trust could cost several thousand dollars.
- Maintenance. You’ll need to add or remove assets and add or remove beneficiaries as births and deaths occur.
- Retitling. Property has to be retitled in the name of the trust, which can be costly and time-consuming.
- No tax breaks. Assets in the trust are still taxable and can be subject to creditors due to a lack of protection.
Contact a Brandon Estate Planning Attorney Today
If you have assets that you want to pass on to others and want to avoid the probate process, a revocable living trust is a good idea. There are pros and cons to this option, though, so make sure you are aware of all your options for estate planning.
Is a trust right for you? Seek advice from Brandon revocable living trust attorney Stephanie Koether from Koether Law, P.A. She can help you pick the right option as you plan the end of your life. Contact our office for a consultation.
