Like many people, you may eventually turn your attention to your estate plan. While it’s easy to believe that a will is all you need, this is very rarely the case. Instead, you could come to find that putting all your assets into a revocable living trust is the best decision you can make.
With this approach, you can control how your assets are handled both while you are alive and after you pass on. For this reason, it’s beneficial to both you and your loved ones.
Unlike a will, with a revocable living trust you transfer your assets, such as your house and money in any bank accounts, into a trust.
With a revocable living trust, you have the option to alter or cancel the arrangement at any time. This is in contrast to an irrevocable trust.
Here are some of the many benefits:
- Avoid probate. Using a revocable living trust, instead of a will, allows your estate to avoid probate upon your death. This will save your heirs both time and money.
- Provide benefits if you face an incapacity in the future.
- Privacy protection. Did you know that a will is public record? This is reason enough for some people to opt for a revocable living trust. They don’t want just anyone to be able to review their estate planning decisions.
- Ability to make changes as necessary. With a revocable living trust, you can make changes as you see fit, ensuring that you always get exactly what you want out of this legal document.
- High level of control. For instance, you can use a revocable living trust to leave money to a minor child for a particular expense in the future, such as a college education or buying a home.
With these details in mind, you may soon realize that a revocable living trust is the best thing you can do from an estate planning perspective.
Now that you know the benefits, you can learn more about the legal process of creating this document.