A Revocable Living Trust is an alternative to a Last Will and Testament. Like a Will, it helps you bequeath your estate holdings to your friends and family members. A Trust has three benefits that a Will does not.
A Revocable Living Trust provides privacy for your estate and your family after your death. It does so because a Trust does not go through probate like a Will. When a Will passes through probate, all court documents, including the Will itself, become public record. If you prefer to keep the details of your life and your property private, a Trust may be the choice for you.
Can Be Used for Disability Planning
Unlike a Will which can only be accessed after you die, a Revocable Living Trust is active during your life and after your death. While you remain healthy, you will retain full access and control to all property titled in the name of your Trust.
Because you can use it during your life, your Trust can also be employed as a disability plan. When you create your trust agreement, you will name a successor trustee to settle your affairs upon your death. If you should become incapacitated, your trustee can step up early to manage your property and finances. If you would also like to allow your trustee to act as your health care agent while you are disabled, speak with your attorney to make sure this language is included.
Helps Avoid Probate
The most well-known benefit of a Trust is that it will help your estate avoid probate. If you do have a Trust, you will have a basic Will called a Pour Over Will. That Will must only be utilized for probate if some of your property was not titled into the name of your Trust. In that case, your Pour Over Will names your trust as its beneficiary and will ensure your property is funded into your Trust. If your Trust is fully funded at the time of your passing, probate may not be necessary.
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