A vital tool your estate planning attorney uses to ensure that your estate is passed to your correct heirs is a "revocable living trust.” A revocable living trust does not go through probate and has many uses. Let’s discuss the advantages and disadvantages of revocable living trusts.
Revocable Living Trusts
You as the "grantor" create a revocable living trust by documenting which of your heirs will receive your assets. You then choose a trustee, who is responsible for the trust. As the grantor of your revocable living trust, you control the management and distribution of the trust assets so long as you are alive. The grantor may revoke the responsibilities of the trustee at any time.
A revocable living trust is a powerful estate planning tool as it provides unparalleled control over the disposition of your assets, avoids the probate process, and protects you should you become incapacitated.
The advantages of a revocable living trust are:
⦁ Avoiding probate
⦁ Maintaining privacy regarding the nature of your assets
⦁ Avoiding estate taxes on your assets
⦁ Space out distributions to loved ones so they don’t receive one large lump sum
⦁ Plan for the health, education, maintenance and support of minor children.
Revocable living trusts are especially beneficial for real estate held in more than one state. If the maker of the trust owns property in several states, it can be left to loved ones efficiently, without the worry of probate. Should the property owner fail to put those properties in a proper trust, probate would occur for EACH state the real estate is owned. Each would be subject to the laws of the states they are located in. Additionally, you would have to provide documentation and go through court proceedings for all states concerned. An attorney is allowed to practice only in states for which they have passed the bar exam. Potentially, one would have to pay for a separate attorney for each state concerned. It’s easier to create a revocable living trust.
Disadvantages of a revocable living trust:
⦁ Documentation requirements that must be properly done
⦁ Transferring assets into trust requires time and documentation
⦁ Updates are recommended every 3-5 years
A revocable living trust is one tool in the suite of your attorney's estate planning toolset. An estate plan and will remain necessary to ensure your assets and heirs are protected.
How Do I Start a Revocable Living Trust?
The first step is to draw up an estate plan. Bolinger Law Firm will help you make sure that all your assets are known and accounted for. You can decide which of your assets to put into a trust to safeguard them for your loved ones.
Let Us Assist You
A revocable living trust is a tool you can use to leave your valuables to your loved ones and avoid probate. At Bolinger Law Firm, a trust attorney will help you protect your assets by putting a revocable living trust together. Contact us today for a free consultation. We are here to professionally help you with your trust law needs. Contact us today or call us at (636) 386-8322.
Located in Manchester, Missouri, we proudly serve clients throughout the St. Louis area such as Chesterfield, Wildwood, Earth City, Maryland Heights, Ellisville, Ballwin, Manchester.