5 Life Saving Facts To Consider Before You Draft A Revocable Living Trust

Posted by smith clea on August 8th, 2022

A revocable living trust is a powerful tool that can help you manage your assets and protect your loved ones. 

But drafting a trust is not a simple process. 

Here are five things you should consider when drafting a revocable living trust:

  1. How much control do you want to maintain over the property?
  2. Do you want to protect yourself from creditors?
  3. Do you want to specify certain heirs?
  4. What will happen if one of the beneficiaries dies before the other(s)?
  5. What will happen if all the beneficiaries die before the settlor?

Do I Need A Living Trust?

If you have assets and want to make sure they go to the people or causes you care about after you die, you need a living trust

A living trust is a legal document that allows you to control how your assets are distributed after you die. 

You can put all your assets into the trust, or some of them. 

The most common assets people put into trusts are homes, investment property, and life insurance policies

What Are The Benefits Of A Revocable Living Trust?

  • Avoid Probate After Death
  • Avoid Court Proceedings
  • Protect Assets From Lawsuits
  • Provide for Specific Individuals Or Uses
  • Transfer Assets at Any Age

Will Putting My Home In Trust Affect My Inheritance?

Putting a house in trust can be a great way to protect your assets and ensure that your wishes are carried out after your death. 

But, it's important to understand how trusts work before making this decision. 

A trust is a legal arrangement in which one person (the trustee) holds property for the benefit of another person (the beneficiary). 

The trustee has a fiduciary duty to manage the trust property for the benefit of the beneficiary

If you put your home in a trust, it will not affect your inheritance. 

You can still leave the property to your heirs in your will. 

The main difference is that, if you have trust, the home will not have to go through probate after your death.

A court becomes involved in trust litigation when the terms of a trust are disputed or when someone challenges the actions of the trustee. 

The court will review the terms of the trust to see if the trustee is following them. 

If the trustee is not following the terms of the trust, the court may order them to take specific actions or remove them from their position.

What Are The Disadvantages Of Putting My Home In Trust?

One disadvantage of putting your home in a trust is that it can be difficult to get the property out of the trust if you need to sell it or borrow against it. 

Additionally, trusts are not typically revocable, so once you put your property into one, you generally cannot change your mind. 

This can be problematic if your circumstances change and you need to access the equity in your home.

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.

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Joined: February 6th, 2020
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