Estate planning involves using an asset transfer vehicle (or vehicles). You could use a last will to facilitate future asset transfers, but you have other options. There are various different trusts that are used in the field of estate planning, and one of them is the revocable living trust.
Revocable living trusts are popular because they allow for efficient asset management. While you are living, you do not lose control of assets that you convey into this type of trust, but you are simultaneously preparing for the inevitable.
The person who creates the trust is called the grantor. There is a beneficiary who can receive monetary distributions from the trust, and there is a trustee. The trustee is the individual or entity that administers the trust.
The grantor of the trust can serve as the trustee and the beneficiary initially. As a result, if you create a revocable living trust you control the investments, and you can take monetary distributions.
You name a successor beneficiary to receive monetary distributions after you die. It should be noted that you could name multiple beneficiaries. When you are creating the trust agreement, you also name a successor trustee to administer the trust after your passing.
When you use a revocable living trust to facilitate asset transfers, the legal process of probate is not a factor. On the other hand, if you use a last will, the will must be admitted to probate before the heirs can receive their inheritances. Probate can be time-consuming, and it can also be expensive.
Pour-Over Will
If you have a revocable living trust in place, you should also have a certain type of will called a pour-over will. With this type of will you allow the trust to capture assets that remain in your personal possession at the time of your death.
For one reason or another, you may not convey everything that you want to pass along to your loved ones into the trust while you are living. When you have a pour-over will, that property will go into the trust after your passing, and it can be distributed to the heirs outside of probate.
Free Report on Revocable Living Trusts
When you hear about the value of a pour-over will, you can see that there are some intricacies to consider when you use a revocable living trust to transfer assets to your heirs.
If you would like to delve into the details, we are offering a valuable resource that contains a great deal of useful information. Our firm has prepared a special report on revocable living trusts, and you can obtain access to your copy of the report free of charge.
To get your copy, click this link and follow the simple instructions: Revocable Living Trust Report.
John’s practice focuses on the use of Wills and Living Trusts in Estate Planning to help individuals protect their families and preserve their legacies after their deaths, but his practice also focuses on the critical issues of protecting individuals with dementia or other diminished capacity, assisting individuals in qualifying for Medicaid and other government benefits to offset the costs of long-term care, and providing special needs planning.
John is admitted to practice law in North Carolina, South Carolina, Kentucky, and Ohio, and he is accredited by the Department of Veterans Affairs.
- What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
- How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
- Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022
