Probate can be a long, expensive ordeal for your loved ones at a time when they are grieving. Creating a revocable living trust can make things easier for them. A revocable living trust has several advantages, one of which is that your estate won’t be subject to probate after your death, in most cases. This is because assets placed in a living trust are independent of your estate and can be distributed directly to the beneficiaries listed on the trust agreement after you pass away.
A revocable living trust can be set up in addition to a will. This will allow you to formally delegate a trustee to oversee the assets in the trust. You will retain control over them during your lifetime, even though your trustee will legally own them.
When would probate still be necessary?
Once your revocable living trust is established, your assets are safeguarded from probate. However, if you acquire new assets and fail to transfer them into the trust, they may go into probate upon your death. To circumvent this issue, it is necessary to have a unique type of will known as a “pour-over will.” Upon your passing, the will “pours” those additional assets into your trust, as the term implies.
Privacy is protected by a revocable living trust
A living trust is a private agreement that keeps your assets and distribution information out of public view while providing rapid financial access to family members in times of need. By avoiding probate, the bank account stays open and available when your loved ones want the cash the most.
Estate planning is necessary, but it can be confusing. When you create your estate plan, seeking assistance will help you make the best choices for you and your loved ones.