Estate planning can be a confusing and often overwhelming process, especially if you are unfamiliar with the types of planning opportunities available to help you protect your assets. One such opportunity that can be very useful for creating an effective estate plan is a revocable living trust. A revocable living trust is a legal arrangement that allows individuals to transfer their assets into a trust, which can be managed and distributed according to the wishes of the individual. These trusts are known as “revocable living trusts” or simply “living trusts.” Read on to learn more about how a revocable living trust can help individuals with their estate planning needs.
What is a Revocable Living Trust?
A revocable living trust (or "living trust") is an agreement between an individual (the "grantor") and another individual or entity (the "trustee"), in which the grantor transfers ownership of property into the trust for the benefit of himself or herself during his or her lifetime, and then later to other beneficiaries upon the grantor's death or incapacity. The grantor retains control over all decisions regarding the assets in the trust while he or she is alive, including deciding who will receive them upon his or her passing. Unlike an irrevocable trust, a revocable living trust may be revoked or changed by the grantor.
Benefits of Using a Revocable Living Trust
The biggest benefit of using a revocable living trust is that it allows individuals to largely avoid probate court proceedings when distributing their assets after death. Without such an arrangement in place, most (possibly all) assets must go through probate court to be properly distributed according to an individual's wishes; this process can take months or even years. Additionally, by transferring ownership into a trust, those assets can be better protected from creditors and potential lawsuits during the grantor's life as well. Finally, creating this type of document allows individuals greater privacy regarding their wealth since it does not require any public filings like wills do.
How Can Individuals Create Their Own Living Trusts?
Individuals interested in creating their own living trusts should seek out professional assistance from an experienced attorney. An attorney will help draft all relevant documents to help you achieve your overall financial and estate planning goals. An attorney can also provide valuable insights on best practices for managing your living trust over time, so that it continues to meet your specific needs as they change throughout your life.
Conclusion
Creating an effective estate plan is essential for individuals looking to protect their wealth over time. One way to do this is by utilizing a revocable living trust, which allows individuals greater control over how their assets are managed both during and after life. By transferring ownership over certain assets into this type of trust, individuals may avoid lengthy probate court proceedings, protect their assets from potential creditors, and maintain privacy of their personal affairs. Ultimately, seeking out professional assistance from a lawyer is essential for crafting an effective plan that meets all legal requirements while still meeting your personal financial and estate planning goals.
Contact Montgomery Legal today to discuss your case and legal options. Schedule a Consultation or call (214) 432-6100.
Explore these related articles to gain further insights on your chosen topic.
Schedule a consultation today or give us a call to start your journey.
