Is a Revocable Living Trust for You?
A revocable living trust is a popular estate planning tool that you can use to direct who will manage the assets in the trust if you are ever unable to do so and how those assets are to be distributed after your death.
You retain control. With a revocable living trust, you transfer ownership of your assets to the trust and yet retain complete control over them. As the trustee, you can spend the assets, sell then, or invest them, just as you can with any assets that are not in the trust. And if you change your mind about the trust, you can change it or revoke it at any time.
Regardless of whether you use a revocable living trust, you will also need a will. You need a will to transfer any assets that were left out of the trust and that cannot be transferred by other means and, if you have young children, to name a guardian for them.
The benefits of a revocable trust:
- Avoid probate. Unlike a will, a revocable trust does not go through probate – a court-supervised process that can be lengthy and costly in some states. As a result, assets in a trust may pass to your heirs sooner and at a lower cost. And if you own real estate outside of your home state, transferring ownership of it to the trust eliminates the need for probate in multiple states.
- Protect your privacy. The trust assets can generally be transferred to your heirs without the details becoming public. In contrast, the details of a will become a matter of public record as part of the probate process.
- A smooth transition if you become incapacitated. The person you name as your successor trustee can quickly step in and manage the trust assets on your behalf if illness leaves you unable to manage them yourself.
Copper leaf Financials’ team of CPAs and experienced estate planning advisors are ready to help you create or update a plan to transfer your wealth. Get the help you need now and be better prepared for the future. For more information call 802-878-2731.