A larger number of individuals seem to be using a revocable trust as the main component to plan their estate. Revocable trusts are an entity that is created during your lifetime where the trustee is responsible for holding the legal titles to all of the property owned for the beneficiary, who is often the one who establishes the trust.
They are considered revocable because the grantor holds the power and rights to revoke the trust at any point in time as well as make any amendments to the trust in a timely manner. Also, as the grantor, you have the option to withdraw certain assets from your trust anytime by simply taking those items back and placing them into your own name.
Living trusts provide you with the capability to transfer title of your assets immediately. However, they are not transferred to the beneficiaries of the estate, but rather to that of the entity handling the trust. Being able to re-title assets throughout your lifetime proves to be one of the main advantages to the trust, especially since there is no court supervision involved. Since the grantor is the main trustee, it allows you to maintain full control over all of the assets involved within the trust.
If you were to become ill or incapacitated, a successor can take over as acting trustee to help manage your trust and provide the care you need. This would not require a legal guardian to be appointed to help transfer the title to all of your assets.
In the event of your passing, the successor would be the one in charge of handling all of the assets without having to go through probate proceedings. If it were necessary to go through probate, there could be a substantial delay in transferring the property to your family. There may be a need for additional accounting (as well as legal and court costs involved) when it comes to dealing with probate court. When there is no court involvement necessary, it can help with the transferring of your assets in a timely fashion. Your wishes will remain private as a trust agreement does not need to be filed with the probate court upon your passing.
Trusts often require a substantial amount of planning for your tax provisions as well as that of an ongoing trust for your family. Having this arrangement in place will allow all of your assets to remain in one piece, so your family will reap the benefits for years to come. In addition, the trust could prove to provide your property with the protection it needs from any creditors or potential claims against your family members.
Given all of the advantages of a living trust, it may not be appropriate for all individuals in every situation. Anyone who is interested in exploring all of the benefits of a revocable trust should take the time to speak with a lawyer to help plan their estate. It will help provide the peace of mind and reassurance you need when you are no longer here.