There are a number of different types of trusts, capable of helping you accomplish a wide range of planning goals. Together they represent some of the most powerful tools in the estate planner’s toolbox.
One of the most commonly used trusts is called a Revocable Living Trust. Like other trusts, it gives you complete control over your assets while you are alive and after you pass away. With a Revocable Living Trust, you do not need to transfer your assets all at once, but can do so as you acquire new assets—and, at the time of your own choosing. One of the primary benefits of a Revocable Living Trust, besides allowing your estate to avoid probate, is that it lets you make adjustments to your trust as your personal and financial situation changes.
As the creator of the trust, you may appoint any competent adult to serve as your Trustee, including yourself. The Trust will establish guidelines for how the Trustee can administer and distribute the assets of the trust.
The benefits of a Revocable Living Trust include, but are not limited to:
- Avoid probate. This is important because probate is typically time-consuming, frustrating and needlessly expensive. Probate also exposes your financial situation and family matters to public scrutiny
- Adjust for changes in your family and financial situation
- Eliminate challenges to your Will and better ensure your beneficiaries receive what you have intended for them
- Allow for separation of assets, which may be useful for tax purposes and protecting assets
- Provides for ongoing financial management
To learn more, and whether you would benefit from a Revocable Living Trust or combination of trusts, contact us for a complimentary consultation.