When a Revocable Living Trust is Necessary
With a revocable trust, individuals can help reduce the likelihood that their family members and beneficiaries will experience large amounts of conflict after they pass away. These written agreements involve determining an agent, who is responsible for distributing property upon one’s death. And because they are revocable, the trust creator can make adjustments as circumstances change over time.
A revocable living trust can be both faster and more private than a traditional will, in addition to completely bypassing the probate process. Following your death, it also allows for a centralization of your estate, as everything being left to beneficiaries are collected in one location.
A revocable living trust can also be incredibly beneficial if the estate is particularly large. Traditionally, the estate will go through a probate process in which all of the assets are collected and any debts are paid off prior to distributing items and funds amongst heirs. Rather than going through this process, which may take weeks or months, the revocable living trusts allows your loved ones to avoid it completely.
Additionally, a revocable living trust ensures that all documents will be kept private following the death of the trust writer, as the agent is the only one actively using the document. This secrecy ensures continuous management of the assets, as only one person is in charge. It also becomes less likely to be contested by beneficiaries.
It’s important to note that a revocable living trust may still be subject to taxes, specifically gift taxes, upon being distributed. It can also be more expensive and time consuming to establish, although it’s often well worth the investment.
Depending on your circumstances, a revocable living trust may or may not be appropriate as part of your estate planning process. If you would like to learn more about your options, consult an experienced attorney with the Charles Law Offices in Florida.