You Should Start 2017 with a Revocable Trust – Here’s Why

No matter your age, it’s never too early or too late to start considering creating a living will and begin estate planning.

When it comes to last wills and testaments, understanding different aspects of it is not only helpful, it’s a must – for several reasons.

Having the right documents in order can bring you and your dear ones a peace of mind and a feeling of security and comfort.

So, do you have a revocable trust in place? If not, here’s why you should.

A revocable trust is a powerful estate-planning tool that you can create at any time during your life, and that can also be changed or terminated at any time.

When you create a revocable trust you become the grantor, the trustor, or the settlor, and, in most cases, also the trustee of the trust and the primary beneficiary of the trust during your lifetime.

A Revocable Trust grants you privacy for yourself and your heirs during the process.

The main purpose for a revocable trust is to avoid probate, the legal process of distributing assets of a decedent at death, which includes taking an inventory of assets, notifying and paying creditors, etc., and is made available to the public. This way, the privacy of the grantor and their beneficiaries is protected.

Next, it is more effective than having just a Last Will and Testament, since revocable trust gives you, the grantor, an orderly way for your assets to be distributed to your chosen heirs upon your death.

Since you can amend the revocable trust document as many times as you wish, the distribution of assets can be changed as your circumstances change, such as acquiring additional assets. A trustee you named in your trust document will work with the executor of the estate to follow your guidelines when the time comes.

A revocable trust also provides creditor protection for beneficiaries, if the assets remain in the trust upon the passing of the grantor.

Unlike a will, a living trust also covers you while you are still alive.

This means that having a revocable trust may reduce your state estate taxes; especially for families living in a state with an additional estate tax, a well-written revocable trust may provide significant value.

When you move assets into a revocable trust, it will not affect an individual’s federal lifetime gift or estate tax exemption, as it is not considered a gift.

A revocable trust is also beneficial if you have assets in more than one state, since without it, your assets, including real estate, held in more than one state would be subject to a separate probate process for each state.

If you’re an investor with significant assets or assets in more than one state, it’s recommended that you consult with your estate planning attorney to review the benefits of this important estate planning tool. That includes having a complex collection of investments, such as real estate, artwork, and other assets that would be difficult for beneficiaries to distribute.

 Finally, assets held in the name of a Revocable Living Trust at the time a person becomes mentally incapacitated can be managed by their Disability Trustee.

This ensure you are in control of who makes decisions for you, instead of a court-supervised guardian or conservator. 

Finally, if you’re not sure what the main difference between a revocable trust and an irrevocable trust is: an irrevocable trust cannot be modified or terminated without permission of the beneficiary, meaning once you transfer the assets into the irrevocable trust, it removes all rights of ownership to your trust and assets.

At the Levin Law Group, our experienced wills and trusts attorneys in New York will assist you in advising and preparing a wide range of estate planning documents, including a Revocable Trust.

Take steps to ensure your wishes, interests and assets are protected. Start the New Year right – get a will prepared by a trustworthy and proficient real estate lawyer.

Contact Levin Law Group New York real estate law firm.