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Is a revocable trust the right choice for you?

On Behalf of | Jan 2, 2024 | Estate Planning |

A revocable trust, also called a living trust, is a legal document created during your lifetime where you name a trustee to manage the assets you transfer into the trust. You maintain control over the assets and can change or revoke the trust at any time

There are several factors to consider when deciding if a revocable trust makes sense for your situation.

Avoiding probate

Assets in a properly created and funded revocable trust avoid going through probate when you pass away. This can save time and money compared to assets that pass by will through probate.

Ensuring privacy

Unlike wills, trusts are not public records. The details of your estate remain private. When you value your privacy and want to protect your family, a revocable trust offers an ideal solution.

Planning for incapacity

A revocable trust lets you plan for incapacity by naming a successor trustee to manage assets if you become unable to do so. This avoids the need for court intervention through a guardianship proceeding if you become incapacitated.

Addressing out-of-state issues

If you own real estate in multiple states, a revocable trust can make transfer upon death easier by avoiding multiple probate proceedings. The real estate can transfer seamlessly through the trust.

Minimizing estate tax issues

Although revocable trusts may not offer the tax savings that irrevocable trusts do for wealthy individuals, they can reduce estate taxes for many advanced estate plans. According to Forbes, individuals filed more than 6,000 estate tax returns in 2021. A revocable trust saves your loved ones that time and expense.

Consider your goals, assets and estate planning needs as you decide if a revocable trust works for your situation.