Revocable Trusts Can Be Modified
The term “revocable” simply means you can modify these arrangements should your circumstances ever change, and “living” refers to the fact that you must create it when you are still alive and of a sound mind.
Avoid Probate with a Revocable Living Trust
If you leave properties to your dependents instead of including them in a will, these will not be subject to probate. A revocable living trust can be relied on for this benefit, as it means your family members will not need to go through a lengthy legal process to receive the assets you intend for them to have. Trusts likewise continue to be exclusive after your passing, whereas they will become public records.
Assets Must be Transferred Into the Trust
Before you can leave assets in a revocable trust, you need to transfer possession of them directly to the trust; nevertheless, with a revocable living trust, you will certainly still maintain complete control of this property. Common possessions to leave in a revocable trust consist of:
- Real Estate
You need an estate planning lawyer to assist in creating a legitimately binding trust document, you must also select who will become the trustee. A trustee is similar to an executor of a will. According to the standards you outlined in the original revocable document, the trustee will certainly carry out the possessions in the trust. As the grantor, you can make changes to these guidelines as required; nonetheless, the trust will end up being irrevocable after your death.
Are You Considering a Revocable Trust Document?
While creating a will could be considered as the most fundamental estate planning document, there are several advantages of forming a revocable living trust as part of your estate plan. If you want to create a revocable living trust, call the skilled Indiana estate planning law firm, Zentz Law at 317-677-7169 or firstname.lastname@example.org.
Q: Does a living trust avoid probate?
A: Property you transfer into a revocable living trust before death avoids entering probate.
Q: If I still owe money on a property, can I add it to my trust?
A: Yes. Such a situation would exist if a property, like a house, is still under a mortgage. The beneficiary of the trust will be responsible for the debt when the property from the trust is distributed.
Q: After a revocable living trust becomes irrevocable trust, how are the assets distributed?
A: The successor trustee, who is the person appointed to handle the trust after your death transfers ownership to the beneficiaries named in the trust.
Q: Are living trusts public documents?
A: Because the assets in a trust are transferred outside of probate, the terms of assets of the trust are not made public.
Q: Where are revocable living trusts valid?
A: A living trust is valid in all fifty states and all commonwealth nations. This is due to the fact that the concept of the Trust came from English law. A living trust should also be a valid document in most nations that have a civil code.