Revocable Trusts have become one of the most popular and important parts of an estate plan. In some instances, the revocable trust has replaced the will as the central component of estate planning, providing for dispositive provisions ordinarily seen in a will. When properly funded and structured, the revocable trust avoids probate, remains private, and allows for the quicker and more efficient passing of assets from one generation to another. As a result, the additional expense associated with creating a revocable trust can often be completely offset by the savings associated with probate avoidance.
Revocable trusts can also be a useful management tool to protect against subsequent incapacity, much like a durable power of attorney. Because the trust should include a built-in process for successor trustees, you have the ability to determine who should manage the trust assets for you in the event you suffer an incapacitating event. This, too, can save money and allow for a more efficient management of your overall estate.
Finally, because these trusts can be easily terminated with no or limited tax consequences, you have the ability to easily modify or revoke theses trusts as needed. This fact leads to another of the benefits of revocable trusts – when you create one, the assets that are put into the trust still remain available for you to use, replace, and dispose. Moreover, you and others can put additional property into the trust by means of lifetime gift, bequest or through beneficiary designations.
Sodoma Law can assist you in creating, funding, and administering (during your life and at your death) your revocable trust. Talk to our Estate Planning Group to learn more.
Contact our estate planning attorneys today by filling out the form below, or use the menu to the right for more information on our specific estate planning services.