Top 5 Reasons to have a Revocable Living Trust
Revocable Living Trusts certainly can be more difficult than creating a simple last will and testament, however they can be the perfect estate-planning tool. Deciding on whether or not one is right for you depends on your personal concerns and circumstances.
There are multiple reasons a revocable living trust can be right for you; here are 5 of them:
- Avoid probate: This reason typically is the greatest advantage of a revocable living trust. It can give your loved ones almost immediate access to cash during a hardship. The trust does not die with its creator, instead the trust remains open and property can be transferred to anyone the grantor has provided for in the trust formation documents. This can come in especially handy if you own real estate in more than one state.
- Managing property after passing: Your successor or trustee takes over when you choose or after your passing. Generally, there is no court supervision or interruptions in managing your property. There is also a greater level of acceptance through the legal and financial community.
- Privacy: Anyone can go into a probate court when a person passes and look at the estate file in some states. You can read the will and find out who the beneficiaries are, see the claims of creditors and list of assets. With the internet nowadays, you can look everything up from the comfort of your own home. Revocable living trusts avoids all of this. They are completely private, not filed with the probate court and unless the grantor or the trustee allow it, no one gets to look at them. Privacy becomes an especially important concern and should be properly addressed with a revocable living trust.
- Reduce estate taxes: Living trusts can be used to take advantage of certain deductions and credits that are allowed under the tax laws. For families living in a state with additional estate tax, a well-written and experienced attorney may provide significant value by reducing state estate taxes.
- Asset protection for beneficiaries: The creator of the trust can amend or terminate it at any time, however if one or both creator’s pass, the trust can then become irrevocable. An irrevocable trust cannot be terminated or amended by the beneficiaries and it gives them the asset protection.
It is important to speak with a qualified estate planning attorney to consider and discuss the best type of trust for you. Contact our office today at (206) 408-8158 to speak with our experienced attorney Darcel Lobo.
19803 1st Avenue S.
Normandy Park, WA 98148
T (206) 408-8158
F (206) 374-2810
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