Customer-Focused Estate And Business Law Service

What is a revocable trust and what are its benefits?

On Behalf of | May 25, 2023 | Estate Planning

A revocable trust is an estate planning tool, also known as a “living trust.” The purpose of this legal document is to transfer ownership of your assets while you are still living and of sound mind. Revocable means that the creator of the trust (the “grantor”) can change or eliminate it at any time.

Benefits of revocable trusts

Revocable trusts are popular because they allow you to have control over your assets, enabling you to avoid probate, the legal process of distributing your assets after your death.

Probate is often time-consuming and expensive. Using a revocable trust, you can ensure that you distribute your assets according to your wishes without going through probate.

In addition, this estate planning tool has the advantage of privacy. Unlike a will, which becomes a matter of public record after you file it with the court, a revocable trust is a private document. Your assets and beneficiaries remain private, which protects both.

If you become incapacitated or unable to manage your legal, financial or health matters, a revocable trust allows you to name a successor trustee to manage your trust for you.

Are there any tax benefits associated with revocable trusts?

While a revocable trust does not directly provide tax benefits, it simplifies your estate planning, and by avoiding probate, you can avoid having to pay certain taxes in some cases.

Revocable trusts are a popular estate planning tool due to their flexibility, privacy and the security it provides for your assets, as well as the guarantee that your wishes are followed.