A revocable trust, sometimes called a “living trust” or “family trust,” is one of the best tools for transferring property from one generation to another. The proper use of a revocable trust can provide safety and security during a person’s lifetime, so that if they are incapacitated, there is already a person and structure in place to take care of their financial affairs.
A revocable trust can be changed at any time. A revocable trust does not offer creditor protection if you are sued. All of the trust assets will be considered yours for government benefit purposes, and all assets held in the name of the trust at the time of your death may be subject to state estate taxes, federal estate taxes, and state inheritance taxes.
There are many advantages to a revocable trust. For one thing, it allows you to plan for mental or physical disability. Assets held in the name of a revocable trust at the time a person becomes mentally or physically incapacitated can be managed by their designated trustee instead of by a court-supervised guardian or conservator. Assets held in a revocable trust also avoid probate. At the time of a person’s death, they will pass directly to the beneficiaries named in the trust agreement. Finally, by avoiding probate, your trust agreement will remain a private document and avoid becoming a public record for all the world to see and read. This will keep the details about your assets and who you have decided to leave your estate to a private family matter.
The Astill Law Office has provided high quality legal services for over 25 years. We specialize in wills, trusts, estate planning, and asset protection. If you have any questions about creating a Trust, Will, or estate planning in general, contact The Astill Law Office at 801-438-8698.