Many people think that they are only for the wealthy, or that they are too complicated to set up. In reality, revocable trusts are a great way to protect your assets and make sure your loved ones are taken care of after you die. In this blog post, we will discuss six things you didn’t know about revocable trusts. Read on to learn more!
Revocable trusts – What you should know about them
Revocable trusts are often thought of as something only the wealthy use to avoid probate or estate taxes. The truth is that anyone can benefit from setting up a revocable trust, and there are many reasons to do so. However, there is a lot one should learn about them before taking the plunge. From the steps to closing a revocable trust after death to the difference between a revocable and irrevocable trust, revocable trusts are not as complicated as they may first seem. A revocable trust is a type of trust that can be changed or revoked at any time by the person who created it. This is in contrast to an irrevocable trust, which cannot be changed once it is created. Revocable trusts are often used to hold assets such as property, investments, and life insurance policies. They can be used to manage these assets during your lifetime and distribute them after your death. One of the main benefits of a revocable trust is that it allows you to avoid probate. Probate is the legal process of distributing the assets of the person that has died to their legal heirs. It can be costly and time-consuming, so many people use revocable trusts to avoid it.
#1 Revocable trusts can save your loved ones time and money
One of the biggest benefits of setting up a revocable trust is that it can save your loved ones time and money. If you have a will, your assets will go through probate after you die. This can be a lengthy and expensive process, which your loved ones will have to go through in order to receive your assets. With a revocable trust, your assets can be distributed much quicker and without the hassle of probate. Additionally, this type of trust can ensure your loved ones receive assets after you pass away. More importantly, you can ensure that, even after your death, your loved ones receive exactly what you wanted them to.
#2 You can change or revoke a revocable trust at any time
Another benefit of a revocable trust is that you can change or revoke it at any time. If you need to make changes to the trust, you can do so without having to go through a legal process. You can also revoke the trust entirely if you no longer want it to be in effect. This flexibility can be beneficial if your circumstances change or you decide that you no longer need the trust. This allows you to change your estate plan as needed, without having to go through the hassle of setting up a new trust.
#3 It can be changed or revoked at any time by the person who created it
A revocable trust can be changed, or revoked, at any given time and that might be one of its greatest benefits. This means that if you need to make changes to the trust, you can do so without having to go through a legal process. You can also revoke the trust entirely if you no longer want it to be in effect. This flexibility can be beneficial if your circumstances change or you decide that you no longer need the trust. Revoking a trust can be as simple as destroying the trust document or transferring the assets out of the trust. Because of this, it is important to keep the trust document in a safe place where it can be easily found.
#4 Is often used to hold assets such as property, investments, and life insurance policies
A revocable trust is often used to hold assets such as property, investments, and life insurance policies. This can be beneficial if you want to manage these assets during your lifetime and distribute them after your death. Furthermore, if you have minor children, a revocable trust can be used to provide for their care in the event of your death. In this situation, you would appoint a trustee to manage the trust and make sure that your children are taken care of financially. By holding assets in a revocable trust, you can avoid probate and ensure that your loved ones are taken care of after you die.
#5 Can provide for the care of minor children in the event of your death
If you have minor children, a revocable trust can be used to provide for their care in the event of your death. You can appoint a trustee to manage the trust and make sure that your children are taken care of financially. This can be beneficial if you want to ensure that your children are provided for in the event that something happens to you. Furthermore, it can also help to avoid probate, which can be a lengthy and expensive process. This can save your loved ones time and money.
#6 You can appoint a trustee to manage the trust
When you create a revocable trust, you can appoint a trustee to manage the trust. The trustee will be responsible for managing the assets in the trust and distributing them according to your instructions. You can choose someone you trust to be the trustee, such as a family member or friend. Alternatively, you can appoint a professional trustee, such as a bank or trust company. Appointing a trustee can be beneficial if you want to make sure that the assets in the trust are managed properly and distributed according to your wishes.
In conclusion, a revocable trust can be a beneficial tool for estate planning. It can be used to hold assets, provide for minor children, and avoid probate. You can appoint a trustee to manage the trust and make sure that your wishes are carried out. If you need to make changes to the trust, you can do so without having to go through a legal process. You can also revoke the trust entirely if you no longer want it to be in effect. This flexibility can be beneficial if your circumstances change or you decide that you no longer need the trust. However, it is important to keep the trust document in a safe place where it can be easily found. If you have any questions about revocable trusts, you should consult with an experienced estate planning attorney.
