A trust is essentially a legal arrangement where you can set instructions for managing and distributing your assets after your passing. It’s a plan for your estate that kicks into action once you’re no longer around. While there are several different types of trusts, this post focuses on the advantages of a revocable living trust.
Why Choose a Revocable Living Trust?
The biggest advantage of a revocable living trust is that it helps bypass the probate process in some ways and in specific instances. Probate is the legal procedure where a court oversees the distribution of your assets after death. It can be lengthy and costly, even when you’re working with experienced attorneys like those at Clear Counsel Law Group.
A trust allows for a smoother and more cost-effective transfer of your assets to your beneficiaries. Generally, the trust you create will have guidelines that help manage it both during your life and after. Some trusts last for generations while others close after the estate is divided.
Think of a trust as a big box where you place your assets. The terms of the trust dictate who manages the assets after your death (the successor trustee) and who receives them (the beneficiaries). However, this only applies to assets you’ve actually put in the box. If you forget to place an asset in this box, it falls outside the trust’s control and may require probate to be transferred to an intended beneficiary.
Transferring Assets into the Trust
Transferring personal items like furniture, art, and electronics into the trust is straightforward. But when it comes to financial accounts and real estate, it requires a bit more effort. For these assets, you need to change the title on the accounts and the ownership on property deeds to reflect the trust’s ownership. As the grantor, you still have control over these assets, but they officially become parts of the trust.
A well-structured and fully funded trust is a relief for your grieving family and friends. It respects and executes your final wishes without the burden of probate costs and delays. This means your loved ones can focus on healing rather dealing with courts and paperwork.
If you’re considering setting up a trust, or if you have an existing trust that needs reviewing, Clear Counsel Law Group is ready to help. Our experienced estate planning attorneys can guide you through the process and ensure a trust aligns with your current needs and goals.