A revocable trust also called a living trust, is a legal document created by you to manage your assets while you are alive and to distribute those assets after your death.
You may think a revocable trust is for the wealthy, but a revocable trust can also offer a person with minimal wealth significant benefits. It can also be modified and updated without limit.
Like most estate planning documents, there are many factors to consider before deciding if a revocable trust is right for you.
The following article includes several of the benefits of a Revocable Trust. If you have any questions, use the link at the bottom of this article to schedule a consultation with Estate Planning Attorney Lisa DiFranza.
A Revocable Trust Helps Your Loved Ones Avoid Probate
Quite often a revocable trust is promoted as a way to avoid probate after your death. Probate is a legal proceeding that can slow down the distribution of assets. With a revocable trust, the assets held in your trust would avoid probate because the trust will outlive you, the grantor of the trust. According to your terms, the property will transfer to anyone you have provided for in your revocable trust. The courts do not need to be involved or provide any oversight. Further, if you own property in multiple states, a revocable trust can also help your loved ones avoid probate in each state.
A Revocable Trust Helps Keep Sensitive Information Private
In the State of Florida, probate records filed with the clerk of courts are subject to disclosure to the public at reasonable times, under reasonable conditions, and under supervision by the clerk or his or her designee. This includes inspection and copying of all wills and codicils (additions or supplements to your will) that are admitted to probate, orders revoking the probate of any wills or codicils, letters of administration, orders affecting or describing real property, final orders, and orders of final discharge filed in the office of the clerk of the circuit court. Strangers, neighbors, anyone can gain access to these sensitive details. A revocable trust can help keep these sensitive details private.
A Revocable Trust Provides an Alternative to Guardianship
Another benefit of a revocable trust is that it can go into effect if you become incapacitated or mentally disabled and unable to make decisions regarding your finances, medical care, or property. This can help your loved ones avoid a court-supervised guardianship. Our law firm is experienced at helping families navigate the guardianship process which has court proceedings that can be expensive, time-consuming, and very complex. A revocable trust would allow for the trustee to take care of your assets so you would not need a guardianship.
Find Out if a Revocable Trust is Right for You
When you are tackling something as important as estate planning and revocable trusts, talking to an attorney can help ensure you fully understand the benefits, as well as the drawbacks, to a revocable trust. Estate planning attorney Lisa DiFranza can help address your unique concerns and wishes.
Click here to request a consultation.