If you become physically disabled or impaired, the trust will appoint you a trustee who will help you oversee your assets.
The living trust is a declaration or written agreement that is established to manage the trustee. The living trust also administers the properties of the grantor. Establishing a revocable living trust is easy as long as you’re an adult and legal citizen. As the creator or grantor of the trust, you can choose any adult as your trustee. Some people choose trust companies to bank for this role. You can also work both as the grantor and the trustee throughout your entire life.
Once you set up the RLT, you can start including your assets such as bank accounts, investments, and real estate, and other properties into the trust. During this period, your assets belong to the trust. As your assets are included in the trust, they won’t have to face the probate process after you pass away.
Even though this is a revocable living trust, you can easily regain your control over your assets even if the assets no longer are in your control. You can modify the trust at any time. Keep in mind that the income of the trust assets is taxable. However, the assets won’t be transferred to your beneficiaries unless you die. Here are the top 4 advantages of the revocable living trust.
You Can Avoid Probate
Probate is known as the legal process that guarantees the proper transfer of your assets when you die. The process requires your revocable trusts attorney to present the valid documents to the probate court. If you have assets in multiple states or cities, your attorney will have to go through multi-processes. Establishing a revocable living trust will help you avoid costly probate proceedings. This will help your beneficiaries receive your assets faster. When you name your assets in the trust, you can bypass the costly courts and take precedence in your property over your Will.
One of the best benefits of revocable living trusts is that you can focus on privacy preservation. Revocable trusts are the best option for the people who are concerned with keeping the information and records confidential even after their death. The probate process through which the Will is subjected to make your real estate and other properties is an open book. This is because the documents entered into the Will become a public record and anyone can gain access. As per Forbes, the living trust will reduce estate taxes.
Flexible and Changeable
Another great benefit of establishing a revocable living trust is that you can make changes anytime you want. Many people assume that their assets cannot be changed or modified once they’re included in the living trust. However, this is wrong. You can make any changes to the trust document without providing any valid reasons.
Assignment of the Power of Attorney
A revocable living trust helps the guardian to control their spending habits so that they can save more for their children. The trust also authorizes another person to take action on your behalf if you feel ill and need someone to make crucial decisions for you. If you become physically disabled or impaired, the trust will appoint you a trustee who will help you oversee your assets. They will also help you choose the perfect attorney as per your needs. This way your financial affairs will stay in food condition.
These are the top 4 great benefits of a revocable living trust. Unlike the Wills, the privacy protection of revocable living trust is greater. You will also have great flexibility. Just like any other legal issue, make sure you discuss it with an attorney before establishing the living trust.