Revocable trusts are a good option for those who care about keeping records and information about assets private after your death. The probate process to which wills are subject can make your estate an open book, as the documents entered into it become public records, available for anyone to access. A revocable living trust can be a powerful estate planning tool. Generally, a revocable living trust is a type of trust that can be canceled at any time and the grantor of the trust is both the trust and the beneficiary (allowing control of the assets of the trust).
A revocable living trust is a powerful tool to begin the estate planning process. Offers flexibility you can't get from other trusts or wills. This is especially useful for people who are just starting to plan their wealth and are not yet sure who exactly to name as beneficiaries. So you say, what the hell are you going to this dinner.
Now, most likely, the presenter will tell you that you can solve all your estate planning needs with one thing, a revocable trust. Now the presenter could call it a living trust, or the presenter could declare it a revocable trust, it doesn't matter. And the presenter explains to him the great things that this trust can do. Sounds good, you're not quite sure what it means exactly, but it sounds good.
You can keep your estate plan private. It might be a little more aggressive. And then the most aggressive presenter will say that he can take you to heaven or the beyond of your choice. Okay, I see you're not buying the last one.
By creating a revocable living trust, individuals can avoid probate, thus saving their families time, money and aggravating circumstances. Revocable living trusts also prevent guardianships because if you become disabled, there is already a trustee to manage your trust assets for you. This document states that if an asset is discovered that is not in your trust after your death, it will go to your trust. With a living revocable trust, assets can be distributed to the grantor and, upon death, a “successor trustee” distributes assets in accordance with the trust's statutory dictates.
There is a lot to consider when deciding whether a revocable living trust should be part of your estate planning strategy. This means that because the assets of a revocable trust still belong to the trust, creditors could go after the assets to satisfy a judgment. In addition, living trusts avoid the probate process, reduce the possibility of a court dispute, and maintain the privacy of your documents. This means that even if the grantor transfers the assets to a living revocable trust, the grantor can recover its property by revoking the trust.
With an irrevocable living trust, you cannot modify or cancel the trust without the approval of all those named in the trust. Both living trusts and living wills allow you to name beneficiaries and plan the distribution of your assets. This is particularly true if you didn't properly add all of your assets to your trust, or if your trust doesn't have enough funds to cover the distribution costs of your assets. If not, the creditor will most likely be able to sue (even after the probate claim is cut) and attempt to collect from property that did not go through probate and passed, instead, through your living trust.
Writing a living trust usually requires more funds and effort upfront because it is a more complex legal document than a regular trust or will. Since the grantor continues to maintain control of a living trust, with the ability to modify or cancel it at any time, all assets in the trust are considered to be the property of the grantor. .