Estate planning involves a wide variety of options. Of course, one starts with the basics of drafting a will with the help of an attorney with experience in handling estate law issues. During those initial consultations, it may come to light that a revocable trust is a good estate planning tool to address the needs of the client.
Also known as a living trust, revocable trusts offer many benefits, most notably giving the person who establishes the trust (the grantor) the ability to modify or revoke the trust up until the day he or she dies. Once the grantor is deceased, the trust shifts to irrevocable to expressly carry out the goals and guidelines it was set up for.
Seven more reasons to pick a revocable trust
Experts believe there are a many benefits to choosing well-crafted revocable trust. These include:
- No probate at home: The main role of a trust is that it allows grantors to pass assets to beneficiaries without going through the probate process.
- No probate in other states: Many Florida residents have property, businesses or assets that are in different states, so families avoid probate in other states as well.
- More privacy: Since the assets do not go through probate, the size, range or amount of assets is not public knowledge. This is appealing to families who wish that their financial affairs remain private.
- Can receive other property: Assets like life insurance policies, pensions, IRAs, a will or other trusts can be moved into this trust after the grantor is deceased.
- Creditor protection: It does not protect the grantor, but it does provide beneficiaries with protection from creditors.
- Flexible distribution: The grantor can determine schedules and amounts for individual beneficiaries, which can be useful if they are young.
- Ideal for blended families: Arrangements can address such issues as multiple marriages involving children and stepchildren, the remarriage of a spouse or other unique circumstances.
Providing care and comfort
The goal of a thoughtful estate plan is to provide care and comfort to loved ones or worthy beneficiaries (such as a favorite non-profit). Families can be torn apart if they are left to guess what a decedent wanted done with the estate. Revocable trusts effectively avoid this burden while also ensuring that assets are not squandered.