Anyone who is single and has assets titled in their exclusive name should consider a revocable living trust. The two main reasons are to keep you and your assets out of a court-supervised guardianship and allow your beneficiaries to avoid the costs and hassles of probate. Revocable trusts are a good option for those who care about keeping records and information about private assets 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 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. A trust can be revocable, which means I can revoke it.
It also means that I can change it. So if I don't like the way I'm doing in life, I'll just change it. That is one of the beauties of this revocable trust. Other trusts are irrevocable, and there are some definite estate planning needs for an irrevocable trust, but we won't talk about that today.
Now my trust can also be established while I am alive and that is why it is called a living trust. Another type of trust is called a testamentary trust, that is the one that was established in my will and again we will save the testamentary trust for another day. After creating a revocable trust, the assets must be re-titled in the trust's name because assets that are not formally held in the trust still have to go through probate and will not be under the management of a successor trustee in the event of disability. However, certain types of assets can still prevent probate legalization, such as retirement plans, insurance policies, annuities, and jointly owned assets, which means that it may not always be needed.
Morning, noon and night, by mail, fax, telephone and email, Nolo is asked if it is enough to make a will or if it is really much smarter to create a living trust with the purpose of avoiding probate probate. Not surprisingly, the answer is: It depends. Some people need a living trust immediately, others will never need it, and most of us fall somewhere in between. While the creator of the trust is alive, the trustee is usually the creator of the trust and then a successor trustee takes over after the death of the trust.
By placing assets (such as a home, cabin, or business interest) in a revocable trust, or by naming the trust as a beneficiary in non-probative accounts, such as life insurance or brokerage accounts, your assets will be distributed according to your wishes and done so without judicial oversight. Revocable trusts should not be confused with irrevocable trusts, which are generally used to withdraw assets (such as life insurance policies or family business shares) from an estate, often for tax purposes. Compared to wills, revocable trusts provide greater privacy, as well as more control and flexibility over asset distribution. If you have a fairly straightforward situation and are willing to do the job, you can create your own revocable living trust.
Upon death, assets held in the revocable trust evade succession, meaning that assets can pass to heirs without involving the courts, which can be time-consuming and costly. A living revocable trust is a legal document created during its lifetime that allows the grantor or creator to re-title assets in the trust's name and select a trustee to manage the trust assets for their benefit (and their beneficiaries). With a revocable living trust, you do most of the work upfront, making the disposition of your estate easier and faster. When it comes to estate planning, a commonly used tool is a revocable living trust, also called a revocable trust or “living trust”.
While assets held in an irrevocable trust are generally out of reach for creditors, that is not true with a revocable trust. A revocable living trust is a popular estate planning tool that you can use to determine who will receive your property when you die. Having the necessary retirement savings and a financial plan will allow you to live the kind of life you want to live during your golden years. Now, the presenter will most likely tell you that he can solve all your estate planning needs with one thing, a revocable trust.