Revocable Trust: The Top Benefits of Having One
Transferring your estate is an important part of estate planning. It involves the transfer of your assets and liabilities to another person or entity, such as a trust or a corporation. While it may seem daunting, it is an important part of ensuring your legacy is properly taken care of. One of the best alternatives to ensure that your wishes are followed is to consult a will and trust attorney to create a revocable trust.
What Is a Revocable Trust?
A revocable trust pertains to a legal document that allows assets to be returned to the settlor (the trust maker) or another person upon the occurrence of a certain event. This type of trust is used for estate planning and other financial planning purposes.
Aside from that, the revocable trust is a versatile document you can use for many different purposes. It can provide for the care of minor children, manage assets for a disabled beneficiary, or avoid probate. You can use it to minimize estate taxes, protect assets from creditors, and facilitate the orderly transfer of wealth to future generations.
What Are the Advantages of Having a Revocable Trust?
When you discuss revocable trust with your will and trust attorney, you’ll be presented with some powerful advantages, such as:
Asset Protection
Every person wants their assets to be in the right hands. With a revocable trust, you maintain control over your assets while ensuring they are distributed under your wishes after your death. Rather than leaving your assets to be distributed according to state law, you can specify how and to whom your assets should be handed out.
Privacy
When assets are distributed through probate, they become public records. With a revocable trust, the contents of the trust remain private. After all, it allows the grantor to maintain privacy and control over their estate. It also authorizes the grantor to avoid the time and expense associated with the probate process. Additionally, a trust can help to avoid family disputes over the distribution of assets, as the grantor’s wishes are clearly outlined in the trust.
Tax Benefits
A revocable trust can also help you reduce the estate taxes you owe. With a revocable trust, you can transfer assets to the trust and have them removed from your taxable estate. As a result, any property in the trust during your death will not be subject to estate taxes.
Flexibility
A revocable trust is one of the most popular options in estate planning. Unlike other trust plans, a revocable trust authorizes you to change the terms of the trust as your needs and circumstances change and discuss them with your will and trust attorney. This allows you to adjust it to fit your changing needs and circumstances.
Simplicity
With a will, you need to specify who will receive your assets and how these assets will be distributed. With a revocable trust, you can establish all your assets in the trust, and you can point out how you want them to be distributed. This can include creating a trust fund for your children or grandchildren, creating a charitable trust, or even setting up a trust for your pet.
Final Thoughts
Creating a revocable trust ensures that your wishes are followed and that your legacy is properly taken care of. It can also provide asset protection, privacy, tax benefits, flexibility, control, and simplicity. So if you’re considering this plan, consult a qualified estate planning attorney to ensure your trust is properly created and administered.
Estate Planning Lawyers Colorado provides a professional and reliable will and trust attorney for your revocable trust needs. We ensure that your wishes are properly documented and that your trust is established and administered. Contact us today to learn more about how we can help you create the perfect revocable trust for your estate!
