What is a revocable living trust?
A revocable living trust (RTL) is a legal document that, as with a will, contains instructions for what you wish to happen to your assets when you die.
A RLT is amendable and changeable throughout your life, as your wishes or circumstances change.
The person who creates the trust is called the Settlor, Grantor, or Trust maker. The Settlor of a RLT maintains control over the assets of the trust as manager or trustee. A successor trustee is appointed to care for assets of the trust, if the initial trustee cannot. An appointed successor trustee also closes or administers the trust estate when the Settlor dies.
How to transfer property into a trust
Transferring property into a revocable living trust isn’t nearly as complex as you might assume. When you initially consult with one of our attorneys, you will provide asset information, including how your assets are currently titled. Typically, title on such assets as real estate, stocks, CD’s and investments, will be changed to the name of the trust. Our attorneys will help you through this process, working closely with your financial advisor and insurance agent.
It is particularly important to work with an estate planning attorney as pertains to tax deferred accounts such as IRS and 401(K)s, to assure that beneficiary designations are properly completed.
Benefits of a revocable living trust
Establishing a revocable living trust as your primary estate planning document has many advantages:
- Allows continued control over your property.
- Can reduce or eliminate estate taxes.
- Avoids probate upon your death, including ancillary probates, if you own property in other states.
- Provides privacy because a trust is NOT lodged with a court, as is a will.
- Minimizes the amount of time it will take to settle your estate, since public probate court procedures are avoided.
- Heirs can be protected from predators and creditors through sub-trusts after the Settlor dies.
- Quicker distribution of assets to beneficiaries because not court involvement.
- More difficult to contest than a will.
- Trust are not just for the “rich”. If you have assets, and a desire to direct those assets to loved ones after your death, a trust can benefit both you and your loved ones.
Call today for a complimentary estate planning consultation
For more information or to schedule a time to speak with one of our estate planning attorneys, call The Law Network PC today, at 303.267.1111 to get started.