Every Single Person Should Have This Type of Trust. Here's Why

Have you ever thought about what would happen to your assets if you were to pass away? Would your family be left with the burden of navigating legal paperwork to distribute your assets? Would your assets go to the wrong people? Estate planning is something that every single person should prioritize. One of the most important ways to plan for the inevitable is by establishing a revocable or living trust.

A revocable living trust is a legal document that allows a person, often called the grantor or settlor, to place assets into a trust during their lifetime for the benefit of themselves or others. Here are the advantages of setting one up.

Avoid probate

One of the most significant benefits of a revocable trust is avoiding probate. Probate is a legal process where the court validates a will and distributes a deceased person's assets like stocks or bonds. This process can be time-consuming, costly, and public (more on this below).

A revocable trust, on the other hand, allows the transfer of assets to beneficiaries without the need for probate. This means that your assets can be distributed much faster and with fewer expenses.

Protect your privacy

Probate can also be a very public affair. Anyone can access the probate court records, which means your assets, debts, and beneficiaries' names will be made public. A revocable trust, however, keeps everything private.

The trust document is not filed with the court, so there are no public records for anyone to see. This can help protect your family's privacy during a difficult time.

Control over your assets

With a revocable trust, you have control over your assets even after you pass. The trust allows you to designate beneficiaries for your assets and property, and you can also specify when and how they will receive them.

This level of control can be particularly important if you have children or other beneficiaries who are not yet ready to receive assets and need to be cared for by a trustee until they are ready.

Provide for incapacity

In addition to asset management, a revocable trust can also provide for incapacity. If you become unable to manage your affairs due to illness or disability, the trustee you designated can step in and manage your assets on your behalf.

This can help make sure that your needs are taken care of and your assets such as investments and savings accounts are properly managed, even if you aren't able to do so yourself.

Creating a revocable trust can be a simple and effective way to manage your assets both during and after your lifetime. It provides many benefits, including privacy protection and getting to avoid probate. Every single person should at least consider creating a revocable trust as part of their estate planning. With the help of an experienced attorney, you can create a trust that meets your unique needs and provides peace of mind for you and your loved ones.