Everyone has heard of the estate planning document called a last will, and many people are well aware of the existence of trusts. You could use a will or a trust to facilitate the transfer of your monetary assets after you pass away.
Revocable Living Trusts
The revocable living trust can be a good alternative to a last will, because the process of probate is not a factor when you have a revocable living trust in place.
Probate is the legal process of estate administration. If you use a last will to state your final wishes with regard to the distribution of your personally owned property, the executor or personal representative must admit the will to probate.
There are certain pitfalls that go along with the probate process. One of them is the time factor. Depending on the jurisdiction, a simple, uncomplicated case will pass through probate in perhaps six months to a year. There are complex cases that can be stalled in probate for multiple years.
Expenses will typically accumulate during the process of probate. These could include legal fees, accounting charges, court costs, the executor’s remuneration, liquidation and appraisal expenses, and various incidentals.
Money that is spent during probate could have otherwise gone into the pockets of the heirs to the estate.
You avoid these drawbacks when you utilize a revocable living trust to transfer your assets. The trustee that you choose would administer the trust. This individual or entity would distribute monetary resources to the beneficiaries in accordance with your wishes as stated in the trust agreement.
These distributions would take place in a timely and efficient manner, because the probate process would not be a factor.
Now that we have explained the value of revocable living trusts, we can discuss pour-over wills. When you create a revocable living trust you convey assets into it, but you may not place everything that you own into the trust. You may also acquire property after you create the trust and neglect to convey this property into the trust.
To account for this personally held property, you could execute a pour-over will. This document would allow the trust to capture your personal property at the time of your death.
Free Report on Living Trusts
A pour-over will is an important add-on if you are using a revocable living trust to transfer your assets. If you would like to learn more about living trusts, we have a valuable resource that is available to you.
We have prepared an in-depth report that will tell you everything that you need to know about living trusts. The report is being offered free of charge, and you can obtain access through this link: Free Living Trust Report.