(440) 530-9166Avon Revocable Living Trust Attorneys
Helping Families Create Living Trusts That Serve Their Best Interests!
When you start the estate planning process, you may not be familiar with how trusts can benefit you by making the transition of your assets to your family easier. These very well may be the first and last estate planning documents you ever create, and you want to do it right. Knowing where to start is a scary task.
Luckily, Hallett Legal Group, LLC is here to guide you through every step of estate planning
and creating a revocable trust that will give you peace of mind and your family the opportunity to grieve your loss instead of dealing with the probate court.
What is a Revocable Trust?
A revocable trust is created by a married couple or an individual, and it may be revoked, altered, or amended during that person’s life.
A revocable trust, also called a living trust, allows you to specify who, when, and how your beneficiaries will receive the assets in the trust after you pass away. It also can provide a method of managing the assets within the trust while you are alive. A revocable living trust is a trust that takes effect while you are still alive.
The creator of a trust is called the trustor. They assign an agent who manages and distributes the assets within the trust, who is called a trustee. People who are designated to receive benefits from the trust are called beneficiaries, and you can assign a beneficiary to act as the trustee of the trust.
While you are alive, you are able to maintain control over the assets within the trust, and you can name yourself a trustee.
If you are married and you and your spouse are planning how your estate will be managed, you may choose to create a joint revocable trust. This allows you and your spouse to transfer assets to the trust. While both you and your spouse are living, the assets, income, and principal of the trust are payable to one or both of you as you choose. If you or your spouse pass away, the trust will remain in effect for the benefit of the surviving spouse. If both you and your spouse die, the trust will be distributed to the living beneficiaries.
What Are the Benefits of a Revocable Trust?
There’s a reason an estate planning attorney may think it is a good idea to create a trust when you are working on your comprehensive estate plan.
Continued Control
You can continue to manage and add assets to a revocable trust while you are alive. A revocable trust has the added benefit of keeping your property and assets available for your personal use should you become incapacitated. It also offers a layer of asset protection, making it harder for debtors to collect debts from your trust.
Avoid the Probate Process
Without proper planning, your estate will need to go through probate after you pass. This legal process determines if your will is valid, if you have one, and oversees the administration of your estate. Probate should be avoided because it is expensive, time consuming and completely public. A correctly implemented trust can help your family avoid probate, offering a smoother transition of assets to your beneficiaries.
This also makes the assets in your trust more readily available to your beneficiaries upon your death.
Caring for Minor Children
A revocable trust is a great alternative to continuing care of your minor children in both of their parent’s parishes. You are able to name a trusted person to act as both guardian of your children and trustee of your trust. They can then use assets within the trust to continue care for your children without the need to involve the probate court.
What Are Some Shortcomings of a Revocable Trust?
There are only a few drawbacks to a revocable trust, and they are relatively minor when compared to the many benefits.
Reregistration of Property
Your trust is treated as an entity with rights similar to yours. When you transfer assets, such as property, to your trust, you must register that property in the trust’s name. Alternatively, you can name the trust as a beneficiary of certain assets, which you may find easier.
Expense
When creating a trust, you will want to work with an attorney who is well-versed in estate planning and probate law. This can be a bit more expensive than simply creating a will where you name your assets and beneficiaries. While there may be a slightly higher cost to create a trust, the savings that will be realized when you avoid probate is significant.
Do You Really Need a Lawyer?
Because trusts are complex, working with an experienced estate planning attorney has many benefits. Speaking with a professional about your specific needs and desires for your trust means your concerns will be heard, and your trust can be created around them.
Call 440-530-9166 to schedule your free consultation with the Hallett Legal Group, LLC team. The hardest step is often the first step; the initial consultation is often all it takes to get the ball rolling and ensure your family and loved ones will be cared for after you are gone!