Creating And Reviewing Revocable Trusts
DAL Law Firm can help you create the estate plan that is right for you with a revocable living trust. A revocable living trust is used to protect your assets and avoid probate. Our office can work with you in ensuring that a revocable living trust is right for you.
In determining whether a revocable living trust is right for you, it is important to understand what it is. In our initial consultation, we will discuss this in more detail, but a brief overview is provided below:
- The largest difference between a revocable living trust and a will is that a will requires probate and a revocable living trust does not.
- While both a revocable living trust and a will leave instructions for your loved ones regarding the administration and distribution of your estate, a revocable living trust empowers your successor trustee to make such distributions, whereas a will does not and will require the oversight and approval of a probate court.
- A revocable living trust is created during your lifetime, and you have complete control of it.
- A revocable living trust continues to exist after your passing, to allow your successor trustee to make distributions according to your revocable living trust.
Our revocable living trust services include:
- An initial consultation to assess your assets, discuss your wants and needs, explain how a revocable living trust works, and help you decide if one is right for you
- Prepare your revocable living trust, which is specifically tailored for you, keeping in mind your wants and needs we discussed in our initial consultation
- Unlimited reviews and revisions to ensure that your revocable living trust accurately reflects your requests
- Execution of your revocable living trust, including the witnesses and notary necessary
A revocable living trust can be a useful tool based on the type of assets, as long as the assets are properly maintained in the revocable living trust. In our initial consultation, we assess the type of assets the person owns, as we want to ensure that such a trust is the right option for their situation.
Frequently asked questions about Revocable Living Trusts:
- What is a revocable living trust?
A revocable living trust is a legal document that allows you to place your assets, such as real estate, bank accounts, and investments, into a trust during your lifetime. You retain control over the trust and can make changes or revoke it as needed.
- Why create a revocable living trust?
There are several reasons to create a revocable living trust, including:
Avoiding probate: Assets in a trust can pass to beneficiaries without going through the probate process.
Privacy: Trusts are private documents, unlike wills, which become public record. Trusts are not subject to probate, and as such, keeps the probate court out of your estate plan.
Management of assets: A trust can provide for the management of your assets if you become incapacitated.
Control and flexibility: You can specify how your assets are managed and distributed.
- How is a revocable living trust different from a will?
A will only takes effect after your death, while a revocable living trust can be used to manage assets during your lifetime and can also specify how assets are distributed after your death. Wills go through probate, while revocable living trusts avoid probate.
- Can I change or revoke a revocable living trust?
Yes, you can change or revoke a revocable living trust at any time as long as you are mentally competent. You can amend or revoke it by creating a new trust document or making changes to the existing one.
- Who can be the trustee of a revocable living trust?
You can be the initial trustee of your revocable living trust, and you can also appoint a successor trustee to manage the trust if you become incapacitated or upon your death. Many people choose a trusted family member, friend, or a professional trustee to serve in this role.
- What assets should I transfer into the trust?
Generally, you should transfer assets such as real estate and personal property into your trust. For financial accounts, those assets can be titled in the name of your trust, or the trust can be named as a beneficiary for those accounts.
- Do I still need a will if I have a revocable living trust?
Yes, it’s often recommended to have a “pour-over” will that can capture any assets that were not placed in the trust during your lifetime. This ensures that all your assets are distributed according to your wishes, however, it only does so through probate, which is what our clients generally want to avoid. This pour-over will should only be viewed as a backup plan, as the intention is to place your assets into the trust.
- Does a revocable living trust protect assets from creditors?
No, a revocable living trust does not provide asset protection from creditors. Assets in the trust are still considered part of your estate and can be used to satisfy your debts.
- How does a revocable living trust affect taxes?
In most cases, a revocable living trust has no significant impact on income or estate taxes. You will continue to report income from trust assets on your personal tax return, and the trust’s assets are included in your estate for estate tax purposes.
- How should I create a revocable living trust?
If you are interested in learning more about revocable living trusts and whether it is right for you, we would suggest contacting our office to book an initial consultation to discuss your wants and needs to ensure a revocable living trust is right for you. If it is, our office will gather the pertinent information from you to prepare your revocable living trust and related documents.