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November 27, 2021

Advantages of Revocable Living Trusts

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Revocable Trust Lawyer

It is important that you begin planning for the financial future of your assets and estate as soon as possible. When planning an estate, many choose to enlist the help of a revocable trust lawyer. A trust lawyer will be an advocate and work to help you understand the options as they pertain to creating a trust. 

A revocable trust is a component of an estate plan designed to manage and guard assets of the grantor (the owner and creator of the estate) as time progresses and in most cases after the grantor passes. A trust is a set of directions that intends to dictate the wishes of the grantor through life and following death; depending on the wishes of the grantor, a trustee may be appointed as a manager of the grantor’s assets – a trustee is responsible for distributing the assets to beneficiaries in accordance with the wishes of the grantor. Trusts are private and remain that way following the death of the grantor.

Advantages of Revocable Living Trusts

There are several advantages of establishing a revocable trust. If the grantor’s health is declining due to old age, a revocable trust can allow the grantor’s chosen manager to have control of the principal. If the grantor owns real estate outside the state of the grantor’s domicile and that real estate is included in the trust, probate of the real estate is avoided. When a beneficiary is not of legal age and cannot hold property, the assets of the minor are held by the trust instead of having the court appoint a guardian.  When the grantor believes that the beneficiary will not use the assets wisely, the trust allows a set amount of money to be distributed on a regular basis.  

Disadvantages of Revocable Living Trusts

There are some shortcomings to revocable trusts. Implementing a revocable trust takes a lot of time and effort. Assets must be turned into the name of the trust by the owner in order to avoid probate. The grantor’s entire estate plan must be monitored on a regular basis to make sure the trust’s objectives are being met. 

The major reason prospective grantors seek legal assistance from a revocable trust lawyer, is the amount of time and effort required to implement a revocable living trust. The complexity of the process warrants a  need for a significant level of skill and expertise that in most cases, only an estate lawyer possesses. 

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