What Are the Benefits of a Revocable Living Trust?

 Posted on April 07,2022 in Uncategorized

During the estate planning process, a person or family may use multiple tools to determine how different types of assets will be handled both during a person’s life and after their death. Trusts are some of the most powerful and flexible tools that are available, and they can be used to preserve and protect assets and ensure that they are used correctly to provide for the needs of a person and their loved ones. Revocable living trusts are some of the most commonly-used types of trusts, and they can provide a family with multiple benefits.

Advantages of Revocable Living Trusts

When a person creates a trust, they will transfer certain assets to the trust and provide instructions for how these assets should be distributed to different beneficiaries. The trust itself will own the assets, and this can provide some protection, since the assets will no longer be part of the person’s estate. A trust involves three parties: the person who created the trust (known as the grantor or settlor), the person who will manage the assets in the trust (known as the trustee), and one or more beneficiaries who will receive distributions of assets in the trust.

With a revocable living trust, the grantor will often serve as the trustee, and in addition to naming family members or other people as beneficiaries, they may also be a beneficiary, which will allow them to use the trust’s assets throughout the rest of their life. A successor trustee will be named who will take over management of the trust after the grantor dies or becomes incapacitated. Because the trust is revocable, the grantor may change its terms at any time. 

Revocable living trusts can provide a number of benefits, including:

• The grantor can maintain control of the trust’s assets and use them to provide for their own needs. This can help them address expenses related to a nursing home or assisted living facility as they get older, while also ensuring that the remaining assets will be properly allocated to their heirs after their death.

• The grantor can provide specific instructions for when assets should be distributed to beneficiaries (either before or after the grantor’s death), as well as details about how different types of assets should be used.

• After the grantor’s death, assets in a revocable living trust can be distributed to beneficiaries without the need to go through the probate process. This can help a family avoid complications or disputes about inheritances.

• The terms of a trust are private and confidential. This can ensure that a family’s financial affairs will be kept out of the public eye when assets are managed by a trustee and distributed to beneficiaries.

Contact a Fort Worth Revocable Living Trust Attorney

If you want to know more about how a revocable living trust can benefit you and your loved ones, or if you are planning to set up a trust as part of your estate plan, Gonzalez Law, PLLC can provide the legal help you need. We will make sure you take the correct steps to protect your assets and assist you in making decisions that will protect your financial interests and provide for your family’s needs. Contact our Tarrant County living trusts lawyer today at 817-349-7330 to arrange a complimentary consultation.

Sources:

https://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp

https://www.thebalance.com/what-is-a-revocable-living-trust-3505191

https://www.consumerfinance.gov/ask-cfpb/what-is-a-revocable-living-trust-en-1775/