Living Revocable Trust
When we think about preparing for the time when we will no longer be able to care for our families, most of us consider preparing a will. As long as we do not die intestate (without a will), then our assets will be disposed of according to our wishes, and those who survive us will be able to maintain our property using the funds and insurance policies that we have left behind for that purpose. However, that can be quite far from the truth. As a matter of fact, wills can be challenged in court, and sometimes the provisions included in them are struck down in a court of law. In addition, any estate that is only willed to the beneficiaries must automatically go through the probate process, which takes anywhere from one to two years, and has very hefty fees associated with it. Instead of making your family wait to receive funds from your estate after they have been greatly depleted by probate fees, you may want to consider a Living Revocable Trust as an alternative to a will. A living trust prevents your estate from the probate process and the fees that are associated with it. Why cause your loved ones to suffer undue hardships that could easily be avoided with proper planning? One of the best choices you can make that will secure your assets for many years after your death is to establish a living trust.
A Living Revocable Trust will prevent your estate from going through the probate process. The probate process can be very lengthy, lasting anywhere from one to two years. During that time, your beneficiaries will have no access to any of the funds that are part of your estate. Also, your estate will be required to pay heavy fees due to the probate process. These fees are based on the gross value of your estate, rather than the equity that you have paid into your estate. If, at the time of your death, you own a house that has an assessed value of $600,000, but that you have only $100,000 of equity invested in it, then your estate will pay probate fees based on the $600,000 gross value of the house. For a house valued at $600,000, your estate may pay up to $38,000 in probate fees, which is about one third of the equity that was actually invested in the house. How will your beneficiaries be able to maintain your property when such crippling fees are mandated by law? One of the things that you can do to preserve the value of your estate is to establish a living trust. Assets that have been put into a living trust do not go through probate, so your beneficiaries will receive your assets almost immediately in the event of your death, and your estate will not have to pay probate taxes.
In addition to allowing your estate to avoid the probate process, a Living Revocable Trust has many other benefits as well. It can be changed at any time, helping you to ensure that you do not accidentally disinherit any of your intended beneficiaries. It is also confidential, so you will not have to worry about the details of the trust becoming public. Unlike wills, living trusts are very difficult to challenge, so you will not have to worry that your plans for your estate will be flouted after you are gone. They even allow you to keep control of your estate when you are disabled, so you will have control of your estate until the end of your life. All of these obvious benefits will help you and your beneficiaries to have more peace of mind about what will happen to them after your death. Finally, they are relatively easy and inexpensive to set up, so you will not have to worry about your plans for your estate greatly diminishing the actual value of your estate.
When you decide to secure the future of your family after you are gone, the best thing that you can do is to consult an estate planning attorney in order to establish a Living Revocable Trust. A living trust will allow your property to smoothly transition into the hands of those that you had intended it for- not a series of faceless bureaucrats who will make arbitrary decisions about the disposal of your hard earned assets. Solid futures are based on solid beginnings. Ensure that the future of your beneficiaries will be stable by enlisting the help of an experienced probate lawyer to draw up a detailed plan for the future, in the form of a living trust. You can rest assured that your property will remain in your control until the day you die, and you will be able to make changes in the trust whenever you see fit. A living trust will preserve the value of your assets long after you are gone, so that your beneficiaries will be able to enjoy the fruits of your labors for years to come. Don’t be too intimidated to get legal advice from a professional. Instead of writing a simple will that can be challenged and possibly overturned in court, create a lasting document that will ensure that your wishes for your property will prevail, and that will keep your estate in the hands of your beneficiaries where it belongs.