Are you considering getting a revocable living trust or a will, but are unsure which one will best suit your needs? There are benefits to both documents, but many of the advantages of choosing a revocable living trust go unrealized by those who do not have them.
What is a Revocable Living Trust?
Sometimes referred to as “inter vivos” trusts, revocable living trusts are estate planning documents used to determine what will happen to your estate in the event of your death. They are unique in that they are revocable – meaning that they change as your wishes or needs do – and they are created while you are living and of sound and stable mind.
A revocable living trust is different from a will in several ways. While both documents allow you to dictate your wishes for your estate’s distribution after your death, name beneficiaries for your estate, leave certain parts of your estate to specific people, and make changes to your plans whenever you see fit, the two do vary in some ways.
With a trust, you can avoid conservatorship (or legally assigned guardian) and probate, as well as lessen the likelihood of a court dispute over your wishes. It can also help you keep your family’s information private after your passing. A will does offer more control over things like who will receive guardianship of minor children and other personal matters in the event of a person’s death, but when it comes to financial concerns, a trust provides more freedom and privacy.
Why You Need One
If you are concerned that there may be disputes among family members or other interested parties when it comes to the distribution of your will, a revocable living trust can help you ensure that your assets will be divided as you see fit.
Likewise, if you wish to avoid court disputes, as well as the “airing of dirty laundry” that can come with having your estate case go to court, leaving behind a revocable living trust is a great way to avoid those problems.
Perhaps the biggest benefit of a revocable living trust is that it helps those you leave behind to avoid the probate process, and all of the frustration that comes along with it.
How a Revocable Living Trust Helps with Probate Avoidance
Probate is the court-supervised process of distributing a person’s estate after death. The probate process is typically expensive, time-consuming, and exposes private information to public eyes. Those who are already grieving the loss of a loved one may find themselves prepared to forfeit their share of an estate if it means that they don’t have to deal with this arduous process.
Thankfully, there are ways to avoid probate. Utilizing a revocable living trust is among the best of these methods. By leaving specific instructions that need no court intervention, you ensure that problems are less likely to arise with your estate’s distribution and that your loved ones can benefit from what you leave behind.
At Peak American Financial, our job is to ensure that your assets are properly registered to avoid probate, as well as to ensure the accuracy of that registration. We prevent common mistakes, clerical errors, omissions, and institutional changes. We also help clients to establish trusts and make meaningful plans for what will happen to their estate once they leave loved ones behind.
Contact Peak American today for more information.