A revocable trust is a written document that figures how the assets of your estate are distributed once you pass. Most estates encompass real estate, investments, and bank accounts, as well as material possessions. Once assets are placed in the trust, they will be transferred to the beneficiaries upon your passing or once a specific milestone has passed. Unlike irrevocable trusts, this trust can be changed or canceled at any time.
How Does a Revocable Trust Work?
Trusts act as a separate entity from your estate. Although you still own the property in trust, if you transfer assets into the trust, they are protected from probate. Think of it like hiding money under your mattress for your heirs’ rainy days.
Once you create a revocable trust, only the originator of the trust (that’s you) can make changes. You may assign a trustee to oversee the assets placed in the trust if, for example, your home will need care and upkeep after you pass and before it’s passed to the heir. The trustee also distributes the assets to the beneficiaries. If there are financial assets in the trust, their value may fluctuate depending on the financial market.
What are the Benefits of a Revocable Trust?
Establishing a revocable trust has several advantages. If you are unable to manage the trust while you are alive, your trustee can take control, ensuring your property is cared for even when you are ill. In cases where your chosen heir is a minor, the assets are simply held on the sidelines in the trust until your heir comes of age. In fact, you can even set thresholds for inheritance such as graduating from college, turning 21, or getting married. The most often cited benefit of creating a trust is that it avoids probate. While probate can gut most estates that are only protected by a will, a trust shields all the assets in trust so your heirs are guaranteed to receive their inheritance.
How ProSe Legal Can Help You Create a Revocable Trust
Our LDAs have years of experience in the trust field. Ensure your wishes are followed even after you’re gone with help from ProSe Legal. We can create a personalized estate planning package that fits your needs.
today or call (909) 497-1349 to schedule your appointment with an experienced LDA today!
