It is customary to begin the New Year by tackling first those tasks that have been put off. As the holiday season winds down, why not begin the New Year by getting your estate in order? A revocable living trust might be the estate planning tool that is right for you.
A revocable living trust is a trust that you create while you are living. Using a revocable living trust as your primary estate planning tool means that your estate will not go through probate upon your death. You create a revocable living trust by signing a contractual document called a “Trust Agreement” or “Declaration of Trust.” You are typically the trustee of your own trust until your death. Upon your death or disability, a successor trustee whom you have named takes over as trustee of the trust and, after paying any valid debts, expenses, and taxes, distributes the trust assets to or for the benefit of your named beneficiaries or, if called for in the trust, continues to hold the trust assets until the occurrence of a predetermined event. The main feature of a revocable living trust is that the trustee is not accountable to the court, and therefore not subject to probate. Many people therefore use a revocable living trust as their primary estate planning tool in order to make things easier for their trusted loved ones by avoiding the time and complications of probate. There may also be some advantages to you by using a revocable living trust to consolidate your assets and simplify your finances.
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About Evan H Farr, CELA, CAP
