First of all, a revocable living trust is an effective document for avoiding probate, protecting privacy, and assigning a manager of your assets if you become incapacitated or die. While many people assume that a will is all they need, wills do not cover incapacitation nor can they escape the probate process. With a trust, your estate plan and your interests have an added layer of protection.
What is a Revocable Living Trust?
A trust is a legal entity that takes over ownership and protection of your assets. Once a revocable living trust is created by a grantor (trust maker), they then choose what assets to place into the trust. Next, the trust is funded with these assets, those assets now belong to the trust. But don’t worry, it is a flexible document and you can reclaim your assets if needed.
The probate process can be a hassle. If the executor is left with a will and no trust, they the probate process must be entered. Once probate begins, there are seemingly endless steps to get assets through the process. Also, these steps can take a lot of time, and inevitably prolong the amount of time in which it takes for your assets to get into the right hands.
For example, if everything goes right and the executor started the probate process immediately, it could easily take 5-6 months. If anything is amiss, or the probate court is behind it can take up to a year.
How Does a Revocable Living Trust Protect Privacy?
A revocable living trust protects a your privacy and your family by avoiding probate. In the probate process, everything becomes public record. As a result, all your assets and beneficiary information becomes accessible to creditors, strangers, and estranged relatives.
Need to know the steps to setting up a trust? Check out our article 5 Steps to Making a Living Trust
Do it Yourself Trust’s Don’t Work
Finally, there are a lot of do-it-yourself programs and cheap alternatives available for creating a revocable living trust. Unfortunately, these documents are often inadequate and will not hold up under probate court scrutiny. Therefore, it’s important to hire an experienced attorney to draft your trust correctly.
Are you ready to set up your revocable living trust or have your existing trust reviewed for accuracy? Give us a call: (912) 352-3999