When it comes to passing on your estate to your heirs, you can use a will or other estate planning tools. A revocable living trust is one of those choices.
An article on aarp.org says the revocable living trust is becoming more and more popular, especially among baby boomers.
Such a trust is a way to avoid probate — the legal process to determine if a will is valid — and offers other before-death and after-death advantages, the story says.
Whether such a trust is right for you depends on your circumstances. An estate planning attorney can help you decide.
Such a trust is a written agreement designating someone to be responsible for managing your property. It is “living” because you set it up while you are alive. It is “revocable” because you can change it.
Advantages include:
- in addition to allowing you to avoid the time-consuming probate process, a trust protects your privacy.
- a trust can also provides peace of mind in that you know your assets and your heirs are protected in the event that you become unable to handle your own financial affairs.
- you can write it up so that your assets pass along at the time of your death or over time.
- it may be able to save you money on taxes.
- it does not have to be funded when it is created.
Such trusts are not for everybody, but if you want one, it is important that a lawyer create the trust for you. Costs vary. While it will cost more than preparing a will, there will be savings by avoiding probate.
If you have questions about estate planning, feel free to call us for a consultation at (626) 696-3145.
