The Revocable Trust – A Better Option for You
A typical Estate Plan is a combination of legal documents designed to fulfill the desired distribution of your estate. Revocable Trusts also referred to as Living Trusts, are mechanisms for the distribution of assets that provide benefits over a Simple Will or other stand-alone Estate Planning documents.
Benefits to a Revocable Trust:
Flexibility – A Revocable Trust can be changed or amended numerous times as your wishes evolve. If you create your Trust while your children are minors, they are less likely to need financial assistance when they mature. You may later decide to leave money to your grandchildren or a favorite charity. With a Revocable Trust, these changes are easily made and provide flexibility in your decisions. Having a trust will not change your daily life; it is merely an avenue for transferring your assets after you have passed.
Administration – A Revocable Living Trust is a mechanism to make the process of dealing with your assets easier for your loved ones after you pass. Rather than needing to obtain authority from the Probate Court, your Successor Trustee will be able to assume responsibility of the assets titled or held in Trust and make the ultimate distributions in a timely and efficient manner.
Spend Now and Save Later – Revocable Trusts are more complex in their drafting and take more effort to implement; however, they are substantially cheaper in the long run. Probating an Estate is a time consuming and expensive process that is easily avoidable by implementing a proper estate plan consisting of a Revocable Trust and the accessory documents that go along with the Trust.
Privacy – There is a level of privacy that goes along with a Revocable Trust. When an estate goes through Probate, it is entered into the public record and becomes searchable. Estates distributed through a Revocable Trust are private. Those who see your wishes are limited to those appointed as successor trustee to administer your estate.
Tax Planning – Some married couples have enough assets to worry about the implication of federal estate tax or "death tax." A thoughtfully planned Revocable Trust can contain necessary tax planning provisions to minimize or possibly avoid tax liability to your estate.
Minor Children – One of the most common reasons for implementing a Revocable Trust is for the protection of money for children. Leaving assets to a minor child comes with a variety of legal issues that can be simplified by implementing a Revocable Trust. Rather than leaving a minor child with the burden of navigating these issues, implementing a Revocable Trust, which outlines distributions, allows you to determine when your child will receive their inheritance. Should you think your child not mature enough to have unfettered access to their entire inheritance at 18 years old, you can set age for distribution, and the successor trustee will maintain the assets on behalf of the child until they reach your decided age for distribution.
It is important to note that Revocable Trusts are only effective over the property, which are titled into the Trust. Changing the title or transferring ownership of your assets to the Trust is often the biggest problem in the Estate Planning practice area. A Revocable Trust only governs assets that are titled or owned in the Trust. Frequently the problems confronted are when the Trust is created, and the client fails to follow through and put their assets in Trust neglecting the purpose of the Trust. If you have a Revocable Trust established early, when you purchase a house, get a new bank account, or make investments, you can directly take these assets in the Trust rather than change the title after the fact.
Creating a Revocable Living Trust early on in life ensures that you are prepared for the worst-case scenario of an untimely death. It is better to be prepared early on in life and aid your loved ones by making the process of dealing with your assets as efficient and painless as possible. These goals are obtained through a comprehensive Estate Plan consisting of a Revocable Trust, Pour-Over Will, Advance Health Care Directive, Durable Power of Attorney, Various Assignment Agreements, and a HIPPA Release.
About The Law Office of Natalie A. Miller
Natalie A. Miller is licensed to practice law in California. Information presented on US laws. This article is legal information and should not be seen as legal advice. The opinions contained herein are those of Natalie A. Miller and not of any other organization. The information contained herein does not create an attorney-client relationship nor a requirement that Natalie A. Miller take you on as a client.
