There are a number of misconceptions that people have about trusts. Some people believe that trusts only exist for the wealthy or that a simple will is capable of meeting their estate planning needs. In reality, trusts offer more advantages than many people realize. Creating a revocable living trust can be complicated. As a result, many people find that it is helpful to obtain the assistance of an experienced estate planning attorney who can make certain that a trust is properly written.
Reasons People Seek Living Revocable Trusts
People who create a revocable living trust realize several advantages, which include:
- Avoiding probate. When a person dies without a trust, a judge oversees a probate proceeding to determine how the person’s assets and debts should be divided. The probate process is often lengthy and can create a number of complications. Fortunately, a properly funded trust is capable of avoiding probate and the emotional and financial hardships that the process often involves.
- Successor can be appointed. If the person who manages a trust becomes incapacitated, that person or the trust’s creator can select a successor to manage the trust. This person will have the ability to manage the affairs of the incapacitated trustor as opposed to a court-supervised guardian. Much like the probate process, the appointment of a guardian is often a complicated task that can require a substantial investment of money and time.
- Some protection. Revocable living trusts do not provide a trust creator with asset protections. Instead, assets owned by the trust are still considered to be a person’s assets because a person still has full control of them. Inherited assets, however, that are held in a trust can protect a beneficiary in case of a divorce or creditor problem. Even if a beneficiary declares bankruptcy or files for divorce, assets held in a trust are not included.
- Things can be kept private. The probate process is a public proceeding. As a result, people who go to a courthouse are at risk of having other people look at their documents. There is even a possibility in these cases that strangers will end up examining your court documents online.With a revocable living trust, you can maintain a greater degree of privacy concerning your personal financial information.
Despite these advantages, it is important to understand that if you get frustrated or sidetracked when you are funding your trust, it will only be partially funded. Many people also report that it is easy to forget to transfer title of newly acquired assets to a trust. Since these and other obstacles exist, many people find it necessary to obtain the assistance of a skilled attorney in creating revocable living trusts..
Speak with an Experienced Estate Planning Lawyer Today
Establishing a revocable trust is more expensive than other available options. Over the long run, however, creating a revocable trust often saves a person a substantial amount of time and money. If you are interested in creating an estate plan, speak with an experienced attorney who understands the complex area of law that controls trusts. Contact Attorney Jim A Lyon today to schedule a free consultation.