If you are creating your estate plan, there are multiple tools you can use to ensure that your assets are distributed according to your wishes when you pass away. One of the tools available to you is a revocable living trust.
What is a revocable living trust?
Generally, as the creator of the trust, you will transfer assets into the trust, which will hold your assets for your benefit until you pass away. You may cancel the trust or make changes to the trust at any time during your lifetime.
At the time of your death, the successor trustee you selected during your lifetime will be in charge of transferring the assets in the trust to your beneficiaries.
Advantages of a revocable living trust
Many estate planning attorneys in Texas recommend revocable living trusts to their clients for several reasons. Some of these reasons include:
- Avoiding probate: The probate process requires the court to supervise the distribution of your assets, which can cost a lot of money and take a long time. Assets in a trust, however, can bypass the probate process and pass directly to the rightful beneficiaries.
- Saving money: While creating a trust can cost more than a will initially, they can save your estate money in the long run, especially if someone contests the distribution of assets.
- Maintaining privacy: Unlike wills, which are available to the public, a living trust remains private.
- Addressing incapacitation: If you become legally incapacitated, the successor trustee you appointed can take over and manage your trust assets without the court stepping in.
There are many advantages to having a living revocable trust as part of your estate plan, but they are not necessary for everyone. An estate planning attorney in your area can help you determine which estate planning tools will best serve you and your loved ones.