When it comes to estate planning, there is no shortage of steps you can take. Of course, you realize that some moves are better than others. This is why you need to consider all your options before you do anything.
For many, a will is the best estate planning tool. Others, however, have come to realize that a revocable trust makes good sense for them. Whether or not you consider this option is up to you, but you don’t want to miss out on something that could do wonders for you and your loved ones.
With all this in mind, let’s examine the definition of a revocable trust as shared by the American Bar Association.
“The term “living trust” is generally used to describe a trust that you create during your lifetime. A living trust can help you manage your assets or protect you should you become ill, disabled or simply challenged by the symptoms of aging. Most living trusts are written to permit you to revoke or amend them whenever you wish to do so.”
Before we go any further, keep in mind that the word “revocable” is important. You can also opt for an irrevocable trust, but this cannot be revoked or changed. For some, that’s something they don’t want to consider as they’ll feel tied down.
The Main Benefits
Now that you understand the basic definition of a revocable trust, it’s time to decide if this is something you should consider as part of your estate plan.
Before you make a final decision, you need to know the many benefits. This is the best way to determine if it’s something that could work for you and your family.
- A way to avoid probate. Are you concerned that your estate will go through probate upon your death? If you’re worried about this, it’s time to consider a revocable trust.
For many, this is the top reason to use a revocable trust as opposed to a will. With a will, your estate will absolutely go through the probate process. You won’t be around when this happens, but it can cost your family a lot of time and money.
With a revocable trust, this is not a concern. Instead, it does not go through the probate process. Not only does this mean your family receives your assets in a timely manner, but it will save them a lot of money as well.
- Peace of mind. Many people think about estate planning and the only thing that comes to mind is a future when they are gone. But remember this: you need to have peace of mind while you are living.
With a revocable trust, it’s easier to feel confident in your estate plan. As a result, you won’t think about this on a regular basis. Instead, you know that everything will be taken care of once you pass away.
- A high level of privacy. Did you know that a will is made public upon your death? If this is something that scares you, it’s essential for you to consider a revocable trust.
A revocable trust is not made public, meaning that your estate is distributed in private. If you’re the type who enjoys a high level of privacy, you need to think long and hard about the differences between a revocable trust and a will.
These are the types of things that come into play as you learn more about revocable trusts. At some point, you need to become familiar with all the benefits. Taking this one step further, compare them to the pros and cons of a will.
Your estate plan is extremely important, so you can’t afford to make a single mistake. Instead, you must take the time to consider and compare all your options.
If you have questions about estate planning, such as how to use a revocable trust to your advantage, be sure to attend one of our free seminars in the near future. Soon enough, you’ll have a clear view of whether or not this is a strategy you can use to your advantage.
If you take the time to join us, don’t hesitate to stick around afterwards to say hi. We enjoy meeting our audience!