What Are The Benefits Of A Revocable Living Trust?

Posted by smith clea on August 8th, 2022

If you’re looking to pass your assets on to your family without the cost and hassle of probate, or want to reduce or avoid estate taxes, setting up a revocable living trust may be the solution you’re looking for. 

While this document can provide several benefits, it’s important to weigh these against the potential drawbacks of creating one to determine if it’s right for you.

Let’s take a look at some of the main benefits of using a revocable living trust as well as some things you should consider before proceeding with its creation.

Avoid Probate After Death

One of the main benefits of setting up a revocable living trust is that it can help your loved ones avoid probate after your death. 

Probate is the legal process through which your assets are distributed after you die.

If you die without a trust, your assets will likely go through probate, which can be time-consuming and expensive.

Avoid Court Proceedings

A revocable living trust can help you avoid court proceedings because it allows you to state how you want your assets to be distributed after you die. 

This means that your family won't have to go through the probate process, which can be time-consuming and expensive. 

You also won't need an executor or guardian for your children.

Protect Assets From Lawsuits

A revocable living trust can protect your assets from lawsuits. 

If you are sued, the court may order your assets to be frozen, which can prevent you from accessing them.

A revocable living trust can also help you avoid probate. 

Probate is a process where the court approves what will happen with your estate after you die. 

It is usually very time-consuming and expensive because it requires hiring an attorney. 

A revocable living trust helps you avoid this hassle. 

You don’t have to go through probate if you put all your property in the trust before death. 

The only requirement is that one or more people must be named as successor trustees (s) when you cannot manage your affairs due to incapacity or death.

Provide For Specific Individuals Or Uses

You can tailor your trust to provide for specific individuals or uses. 

For example, you could create a trust that provides for your disabled child until he or she can support him- or herself, or you could set up a trust to care for your pets after you die. 

Besides, trusts are often used as tools in estate planning. 

A trust can allow an individual to choose how their assets will be distributed after they die, while also avoiding probate and providing protection from creditors.

Finally, trusts are more flexible than wills because they allow the owner of the trust (the grantor) to change the provisions of the trust at any time.

Transfer Assets At Any Age

A revocable living trust can be used to transfer assets at any age. 

You can use it to transfer assets to your children, grandchildren, or other loved ones. 

You can also use it to protect your assets from creditors or lawsuits.

About The Author

Clea Smith is a USA-based author on Legal issues related to estate planning, will & trust, business law, and elder law. Clea Smith does her best writing on these topics that help users to find the best solutions to their FAQ on estate planning attorney, probate, living trust vs will, and more about legal family issues.