When it comes to formulating an estate plan, there are so many benefits of a revocable trust. A revocable trust is a trust created by a grantor during their lifetime, and it is a trust which can be revoked or amended by the grantor during their lifetime. A revocable trust is a beneficial avenue to take when dealing with estate planning because of five different reasons.
The first of which is that a revocable trust avoids probate. This is good for timing reasons; an already paid for trust will not need to go through probate after the grantor dies. The funds automatically transfer without having to wait for an executor to allocate the funds. The second reason why a revocable trust is beneficial is because it provides protection for the grantor and grantee. Under the revocable trust, there is no after-death distribution scheme that makes beneficiaries included and assets up for grabs; the trust is already established to go to the grantee. The third reason why a revocable trust is beneficial is because it avoids the “probate account allowance” that annually recurs when one is dealing with a will. The fourth reason that revocable trusts are good is because the amendment process is quick and easy. Unlike in the making of a will, when making a trust, no witnesses are required, and the grantor and grantee do not have to sign at the same time. Lastly, in certain situations, the revocable trust can be used in place of a conservatorship to allocate assets of a sick grantor, etc.
Pour-over wills: A pour-over will differs from a regular will in that at the testators death, it allocates the residue of the testator’s assets to an inter-vivos trust instead of giving to the next in line beneficiary. This particular type of will works with the trust to ensure privacy, as the estate does not need to be probated. An avoidance of probate also saves time and hassle after a testator passes away.