A revocable living trust is a document you can create to detail your wishes for assets that you hold within the trust. The assets you put into the revocable living trust are managed by a trustee of your choosing, and you, yourself, can serve as the trustee, if you want. However, if you do choose to serve as your own trustee, you should be sure to also choose a trusted person as a successor trustee.
One of the main benefits to a revocable living trust is the ability to avoid probate. Probate can be an expensive and time-consuming process. It is also a public process. By avoiding probate, you can help your heirs receive your assets quickly and easily after your death, while also ensuring your family’s privacy.
Protection while you are alive
If you become incapacitated, but you have already established a revocable living trust, your successor trustee can manage your assets on your behalf. This will help make sure assets like property do not lose value while you are unable to care for them, but it can also help make sure your needs are provided for while you are incapacitated.
Provide for your loved ones after you pass away
You can use your trust to hold money for minor children until they are older. You can also use it to distribute money to loved ones in small amounts over time. This can be especially helpful if one of your beneficiaries is not skilled at money management.
Adapt to changing times
A revocable trust is so called because you can alter or revoke the trust while you are still alive. This flexibility allows the trust to be changed as the situations in your life change.
It is important to note that a revocable living trust can involve a lot of paperwork, and may not be the right estate planning tool for everyone. However, depending on your situation, the many benefits may outweigh the drawbacks.