A revocable trust (or revocable living trust) is a type of estate asset management tool used by many people for various purposes. Because this type of trust is revocable, you can pull out assets whenever you wish, as opposed to an irrevocable trust. But is a revocable trust right for you? The attorneys at Strategic Counsel Law Group, L.C. can provide invaluable guidance when it comes to asset protection, management, and estate planning, and can help you create the ideal trust for your given situation.
The Three Main Benefits of Creating a Revocable Trust
Do you own property in another state? Do you want to ensure control of your assets if you become incapacitated? A revocable trust can do both.
- Avoiding Probate—Probate is the legal proving of a will. It takes time and money, and is open to public knowledge. As such, many people wish to avoid probate for a faster, easier transfer of assets for their beneficiaries, as well as to keep the matters of their estate private from creditors and other interested parties.
- Avoiding Interstate Probate—If you own real estate in another state, you may want to consider putting that asset into a revocable trust in order to avoid probate in that state.
- Maintaining Control of Your Assets During Incapacitation—If you become legally incapacitated due to dementia, an injury, or another type of illness, you stand to lose control of your assets. Without a revocable living trust or power of attorney, there would likely be lengthy court proceedings and court supervision of the person designated to manage your assets. Even worse, some court-appointed guardians have been known to mismanage or even steal incapacitated parties’ assets. But if you have a revocable trust, the assets within the trust will continue to be managed by your trustee.
Do Not Create a Revocable Trust For These Reasons
Some people become convinced that a revocable trust is for them, often because they are told incorrect facts about revocable trusts or misunderstand what they have read about them. If your primary goal for creating a revocable trust is any of the following, you may want to reconsider your options:
- Using a revocable trust in placement of a will
- Attempting to avoid estate taxes
- Shielding assets from creditors
- Attempting to save income
- Assuming that you will not have to manage or touch the trust ever again (revocable trusts should be monitored annually)
In summary, revocable trusts do not shield your assets from creditors, they do not offer any sort of shielding from taxes, and they should not be used instead of a will. Everyone needs a will.
Call Our Experienced Revocable Living Trust Attorneys Today
If you want the flexibility of a revocable living trust but are not concerned with shielding those specific assets from creditors or taxation, a revocable living trust might be for you. In fact, many people incorporate both revocable and irrevocable trusts into their estate plans, as both serve different purposes. The revocable living trust attorneys at Strategic Counsel Law Group, L.C., can help you get started today. Call 813-286-1700 to schedule a free consultation.
