Revocable Living Trusts are extremely useful estate planning tools for a variety of reasons.
First, it is important to understand that when you transfer title of your property to the trust, you usually name yourself as trustee. This allows you to have control of the assets and not too much changes in day-to-day management of the property.
With a Revocable Living Trust you can revoke the trust while you are alive and mentally capable. This allows you to transfer the property back to your possession. This ability makes for a nice option in case you need it, and reassures people.
If you become mentally incapacitated and are unable to act as trustee, a successor trustee takes over your duties in managing the trust. That person is called a successor trustee. The successor trustee will be responsible for handling financial issues of the trust because you are unable to. This successor trustee would be someone that you trust -- often a spouse. Additionally, there is usually a "fall-back" second successor trustee in case the first trustee can't perform the required duties.
When you die and you don't have a Revocable Living Trust, your estate goes through probate. This necessitates a probate attorney and the total probate fees can be very high. This is money that doesn't get to go into your desired beneficiaries hands. It may also take many months to finish probate, and the results are available in the public record.
If you had created a Revocable Living Trust however, the property would have avoided probate. The successor trustee would take control of the trust upon your death and would be responsible for distributing the trust property to the beneficiaries as specified in the trust.
For the above reasons a Revocable Living Trust is attractive to someone faced with probate. Forming a Revocable Living Trust is a smart decision, even if it costs money in the short term. In the long run it saves time, money, and privacy. Contact an attorney in you state to review your state's laws and how they affect your particular situation.
First, it is important to understand that when you transfer title of your property to the trust, you usually name yourself as trustee. This allows you to have control of the assets and not too much changes in day-to-day management of the property.
With a Revocable Living Trust you can revoke the trust while you are alive and mentally capable. This allows you to transfer the property back to your possession. This ability makes for a nice option in case you need it, and reassures people.
If you become mentally incapacitated and are unable to act as trustee, a successor trustee takes over your duties in managing the trust. That person is called a successor trustee. The successor trustee will be responsible for handling financial issues of the trust because you are unable to. This successor trustee would be someone that you trust -- often a spouse. Additionally, there is usually a "fall-back" second successor trustee in case the first trustee can't perform the required duties.
When you die and you don't have a Revocable Living Trust, your estate goes through probate. This necessitates a probate attorney and the total probate fees can be very high. This is money that doesn't get to go into your desired beneficiaries hands. It may also take many months to finish probate, and the results are available in the public record.
If you had created a Revocable Living Trust however, the property would have avoided probate. The successor trustee would take control of the trust upon your death and would be responsible for distributing the trust property to the beneficiaries as specified in the trust.
For the above reasons a Revocable Living Trust is attractive to someone faced with probate. Forming a Revocable Living Trust is a smart decision, even if it costs money in the short term. In the long run it saves time, money, and privacy. Contact an attorney in you state to review your state's laws and how they affect your particular situation.
About the Author:
Nick Wroblewski is a Chicago estate planning attorney and owner of law firm Windy City Esquire, Ltd. If you reside in Illinois and have estate planning questions, contact Nick. Information is also available on the Windy City Esquire blog. If you live outside of Illinois, contact an attorney near you for estate planning assistance.
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Unknown - Monday, September 17, 2012
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