Revocable Living Trust

A revocable living trust (RLT) is an estate planning document that determines how your property and assets are to be managed and/or distributed both during your lifetime and upon your death.  This estate planning tool also can greatly reduce your estate planning taxes, thereby providing more of the estate value to your heirs.

A revocable living trust creates a separate legal entity that holds your property and assets on your behalf. While you are alive and of sound mind, you retain complete control over the property and assets, assuming you are the trustee. You can do anything you desire with the assets during this time (spend, invest, etc.). Upon your death, your property and assets are distributed or invested according to the instructions of the trust.

Advantages of a Revocable Living Trust
The most significant advantage of a properly created and funded revocable living trust is the avoidance of probate for the assets in the trust. Upon your death the assets are not required to go through probate court and avoid probate fees and estate taxes.

While there is a cost for creating and administering a revocable living trust, it is substantially less than the probate fees for administering a will.  The amount of savings varies depending on the value of the estate.  In short, the savings can range for thousands of dollars to tens of thousands of dollars or more.

Another advantage of a revocable living trust is transference of property/assets.  If your assets went through the probate court process, it would take approximately six (6) months before your heirs receive the assets. With a trust, your heirs receive the assets immediately.

Still another advantage of a revocable living trust is continuity while incapacitated. Should you become incapacitated, the person you named as a successor trustee will be able to manage the assets of the trust on your behalf. This ensures all your financial matters are managed in a timely matter and that you receive the care needed (payment of services, extended care, etc.). There is no long wait while a court determines what to do with your assets and how to fund your healthcare while you are incapacitated.  Your successor trustee can step in immediately and manage your trust.

Finally, privacy is yet another advantage of a revocable living trust.  All documents related to the trust are private.  The public has no access, unlike your will which must be filed with the probate court and is a public document.

There are many ways to address the specific and unique circumstances you may have in a revocable living trust. We encourage you to call our estate planning attorneys to learn how a trust may be a good solution for you.  Please call our law firm or contact us online to schedule an initial consultation.