There are a number of estate planning options for people who wish to leave their estates to their heirs.
The most common is a will. But another option that is becoming more popular is a revocable living trust.
A revocable living trust is an arrangement whereby one person, called a “trustee,” is given responsibility for managing your property.
We call it a “living” trust because it is created while you’re still alive. And it’s “revocable” because you retain the power to change or dissolve the trust any time, as long as you have the mental capacity to do so.
The real advantage of a revocable living trust is that you can be designated as the trustee of your own trust, thereby having all the advantages of the trust without losing the control and use of your property. As trustee of the property transferred into the trust, you keep the power to manage, sell and exchange your property as you see fit.
In addition to providing all the benefits of a typical will, a revocable living trust provides the peace of mind that comes with knowing that your assets and your heirs will be protected in the event you unexpectedly become unable to handle your own financial affairs because, in addition to naming yourself as trustee, you can appoint a trusted confidant as a successor trustee.
Finally, a revocable living trust can eliminate the need for your property to pass through probate when you pass away. This ensures a seamless transition of your assets to your loved ones.
As you can see, there are a number of advantages to a revocable living trust. However, there is some extra work in setting up a revocable living trust.
Whether it is right for you depends upon a number of circumstances. Therefore, it is important to seek the advice of a competent attorney who practices in the area of estate planning.