Estate planning allows for a lot of customization in planning how to divide your assets to your beneficiaries. Depending on your particular circumstances, you can choose from two options: a will or a revocable trust.
In a revocable trust, you sign an agreement choosing a person or naming a corporation like a bank to serve as a trustee to administer your trust and manage your property. Executing this document carries several benefits, including the fact that you still have access to your property and can use it for your benefit even if you become incapacitated.
1. Flexibility
The revocable trust allows you to amend the document at any time while you are still alive. This means that you can change your trust at your own discretion which is typically easier to do than amending a will.
Additionally, with a revocable trust, you can name unrelated individuals or people who live out of state as your primary administrator. You might not have the flexibility to do this in certain jurisdictions without having a revocable trust.
2. Uninterrupted investment management
Should you become disabled, incapacitated or after your death, your revocable trust will provide uninterrupted investment management. As long as you transferred your assets into the trust’s name, there is no need to develop new investment strategies or try to re-register securities.
3. Avoiding probate
In the probate process, the court oversees the distribution of a deceased individual’s property. Sometimes, probate can become fairly lengthy and expensive, depending on the estate, assets and people involved. With a revocable trust, you can avoid probate since the trustee will distribute your assets according to the instructions.
Overall, revocable living trusts protect your privacy, minimize estate taxes and avoid probate court.
Kevin Tharpe
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