What is a revocable living trust?
A revocable living trust is an important part of many people’s estate plans. This kind of trust is similar to a will in that it contains instructions on what you want to happen to your assets when you die. However, a revocable living trust (living trust for short), allows you to skip the probate process.
For many people, one of the primary goals of creating an estate plan is avoiding probate. Probate is the court process that is used to distribute a decedent’s assets according to his or her will, and it can be long and expensive. Additionally, it takes place in a public forum, which people who care about privacy don’t like.
A living trust makes it possible to avoid probate by placing all of your assets into the trust, so that they can be distributed by a trustee that you appoint instead of the court. You can remain the trustee of your trust until you die or become incapacitated.
Just like a will, you determine exactly how you want the trust assets divided between people or entities of your choice, known as beneficiaries. You also retain complete control of the trust and the assets in the trust until you die or become incapacitated, which is why is it called a “revocable” trust.
A living trust is a good idea for anyone who wants their assets to be transferred upon death without having to go through the probate process. While it may sound complex, creating a living trust is an easy thing to do with the help of an estate planning lawyer.
Keep reading or talk to a lawyer in your area for more information on creating a living trust.