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A revocable living trust is an estate-planning tool to help beneficiaries manage their inheritance. For instance, if you are concerned about your beneficiaries’ ability to properly manage their inheritances, a revocable living trust gives you the control as you transfer property and/or assets into the trust over the course of your life.

There are four primary components of a revocable living trust: a trustee who is responsible for distributing and managing the trust, a grantor, or the person who creates the trust, the trust assets which include the property transferred into the trust, and the beneficiaries, the people who benefit from the trust itself.

Here is a partial list of the advantages of creating a revocable living trust:

  • Revocable Status: The fact that the trust is revocable means that it can be changed or amended during the course of your life, providing flexibility.

  • Avoiding Probate: One of the main benefits of establishing a trust is to remove assets from your estate. Numerous probate proceedings can be expensive and time-consuming, so a revocable living trust transfers the assets effectively and efficiently. When assets are transferred through the probate process, details about the transfer can be a matter of public record. Using a revocable living trust, on the other hand, allows details about your assets and their transfer to remain completely private.

  • Separating Assets: Used as an estate-planning tool, a living trust can be an ideal solution for married couples where significant assets were accumulated by one or both parties prior to the marriage. A living trust can also separate assets to be passed on to beneficiaries from other community property assets.

  • Reduce Estate Tax Complications: If you’re revocable living trust is written properly, provisions inside the trust can allow for a credit shelter. A credit shelter trust helps to reduce estate taxes in large estates. Taxes can significantly reduce the value of your estate if you have not properly planned. Work with your attorney to craft a revocable living trust that represents all of your interests.

  • Control Over the Distribution Of Assets: Implementing plans for a professional trustee to manage the property can allow your assets to provide benefits for multiple generations. The structure of the trust is incredibly important in exercising control.

  • Articulate Your Desires: If you’re concerned about siblings or other family members arguing about the estate after you have passed away, a revocable living trust clearly articulates your wishes and plans for your assets. This reduces confusion and arguments.

A revocable living trust is a powerful tool giving you flexibility and control over how your assets will be distributed after you pass away. Working with an experienced attorney like Jonathan Meek at Meek Law Firm is critical for your revocable living trust. Contact him today to schedule a consultation. Call (704) 848-6335 or use the contact form on the right of this page to set an appointment.

Post Author: April Baker