There are different vehicles of asset transfer used in the field of estate planning. When you discuss everything with an estate planning attorney, your attorney will gain an understanding of your unique personal situation and make the appropriate recommendations.
Many people assume that a last will is the best choice. A last will can be effective under some circumstances, but you do have other options. One very popular alternative to a last will is a revocable living trust. In this post we will look at the benefits that you gain when you create this type of trust.
Probate Avoidance
Probate is a legal process. If you maintain personal possession of your property and direct its future distribution through the terms of a last will, the executor must admit the will to probate. During the process of probate the court will supervise the administration of the estate.
This process is useful in some ways, but it comes with some pitfalls. One of them is the fact that it is a time-consuming process. You probably want your heirs to receive their inheritances quickly and efficiently. This is not going to happen if the estate is passing through probate.
Complicated cases can be stalled in probate for years, and simple cases are going to take a number of months.
There are also expenses that can accumulate during probate. Money that is spent during probate would have otherwise gone to your heirs.
If you were to use a revocable living trust to transfer assets, the probate process would not be a factor. The trustee that you name in the trust agreement would distribute the assets to the beneficiaries in a timely manner in accordance with your wishes.
When you use a last will, the inheritors typically will receive lump sums. With a revocable living trust, you can instruct the trustee to distribute assets in a measured fashion if you choose to do so. This is another advantage that you gain with a revocable living trust.
Incapacity Planning
A significant percentage of seniors become incapacitated late in their lives. Alzheimer’s disease is a major culprit, but there are other causes of incapacity.
When you create a revocable living trust, you could name a disability trustee. This individual or entity would be empowered to administer the trust in the event of your incapacitation. The ability to address the possibility of future incapacity is another benefit.
Free Report on Revocable Living Trusts
We have created a special report that takes an in-depth look at revocable living trusts. This report is being offered free of charge at the present time, and you can access your copy through this website.
Click this link to access the report: Free Living Trust Report.
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