Many families have found a revocable living trust to be a valuable estate planning tool. This type of trust won’t be of value for everyone, but it’s worth considering if your family would benefit from a revocable living trust. Talk to estate planning attorneys in Chandler, AZ, to find out if this would be helpful in your situation.
What is a Revocable Living Trust?
A living trust simply means that the trust was created while the person who set it up, the trustee, is alive. The property is transferred into the trust and managed by the trustee for the benefit of another person, the beneficiary. Since the trust is revocable, the person who set it up has the right to change or cancel the arrangement.
A revocable living trust offers many benefits.
Avoiding Probate
Avoiding probate can be a substantial benefit for heirs. Even an “informal” probate can take up to a year to complete and cost thousands. With a living trust, the successor trustee (the person appointed to take over after the trustee’s death) immediately distributes the estate as stipulated in the trust. The process is quick and costs are minimal.
Protection for Assets if the Trustee Becomes Incapacitated
Without a living trust, there are two options if someone is no longer able to handle their affairs: either
having a conservator appointed by the court, or
giving someone else the right to manage financial matters with a Durable Power of Attorney, which may or may not be honored by financial institutions.
With a living trust, the successor trustee takes over the responsibilities connected with the assets in the trust.
Retaining Control
The trustee retains complete control over the assets held in the trust and can make changes if needed.
Gifts to Children
Assets held for children by the trust will be given to children as specified by the trust. Payments can be made for only specified purposes, such as education or health, or at a certain age.
Protecting a Child’s Inheritance
A trust can be used to protect the children’s inheritance from ex-spouses, lawsuits, and creditors, after the death of the trustee.
If you are interested in learning more about the benefits of a living trust, contact the law firm of Janet R. Feeley, L.L.C. These estate planning attorneys in Chandler, AZ, can help you find the right way to protect your hard-earned assets for your family’s future needs. Visit this website to request a consultation.
