While owning a valid will is an important aspect of life, it is not the only type of estate planning tool that can help safeguard your loved ones’ future inheritance. When you establish a revocable living trust (RLT), you can keep your wealth private and streamline your asset distribution process.
To help provide a deeper understanding of this topic, here are three key benefits of a revocable living trust:
You can avoid probate
When you pass away, your estate will go through a legal administration process known as probate. Since probate hearings are open to the public, it can be a source of stress and tension for your grieving family and close relatives.
Additionally, if you own a large estate, your probate case is bound to become more complex in comparison to those with smaller estates. This means that your estate administration may turn costly and lengthy.
When you have a RLT, you help skip probate for most of your assets and property. This is because the assets that you place on a RLT have assigned beneficiaries to them.
You can protect yourself in case you become incapacitated
A RLT provides you with the opportunity to appoint a “successor trustee” in case you become incapacitated in the future. This means that if you become physically or mentally incapable of managing your affairs, the person you choose as your successor can oversee your trust’s directives on your behalf.
One of their major responsibilities as your successor trustee involves notifying your beneficiaries and other related parties about your health status and how your RLT is being managed.
You can update your RLT’s contents
While an irrevocable living trust cannot be changed or revoked upon establishment, your RLT can be. This empowers you to be in control of your revocable living trust’s contents over your lifetime. With the guidance of an estate planning attorney, you can update your list of beneficiaries, reselect your appointed trustee/s and change your asset distribution terms.
With a RLT, you help safeguard your future
By gaining insight into what makes a revocable living trust beneficial, you can weigh your options better. This step can help you devise a plan that can align with your personal goals and your family’s needs the best.