A revocable trust is an estate planning vehicle that is an alternative to a Last Will and Testament. It comes into effect while you are still alive, unlike a Will. Property and assets are transferred to the trust, to be held and administered by a Trustee for the benefit of another.
During your life, as long as you are able, you can serve as the Trustee of the Trust. You have full control over the trust assets, just as you would without a Trust. You can change the Trust at any time or revoke it altogether.
Upon your death, the Trust dictates the distribution of your assets. The Trust could be administered for the benefit of a surviving spouse or children, or could be liquidated and distributed.
A revocable Trust has several benefits:
First, a revocable Trust provides for the orderly management of assets. During your lifetime, you can manage the assets as you see fit.
Second, a revocable Trust allows you to make private provisions with respect to the disposition of your assets. As a result, your assets and distribution plan will remain confidential.
Third, if done correctly and completely funded, a revocable Trust will avoid probate. Your wishes will not become part of public record, as they would if your estate went through probate. You will also save money on court costs and attorney’s fees.
Finally, a revocable Trust is a good vehicle for planning for potential incapacity. By specifying a procedure for determining incapacity and then naming a successor Trustee, you can ensure the seamless administration of your affairs.
Creating a trust can have several benefits. Be sure to consult with one of the experienced attorneys at Abendroth Russell Barnett Law Firm when choosing a trust for your estate planning.