Over the past several months, we have used this space to provide insight about the Estate Planning process, and the benefits of a Revocable Living Trust. Now, we would like to discuss Revocable Trusts in more detail, and how they can help you protect your assets and loved ones.
What is a Revocable Trust?
A Revocable Trust is an entity that allows you to control your assets both while you are living and once you are gone. With this Trust, you will help your loved ones, and allow assets and property to transfer with ease.
What are the Benefits of a Revocable Trust?
Revocable Trusts provide peace of mind for your loved ones once you are gone.
There are several benefits to including a Revocable Trust in your Estate Planning package:
• Many assets, including your home, can be directly transferred into the Trust
• The Trust can also serve as the beneficiary of Life Insurance policies, retirement accounts, and other important assets
• Avoiding both probate and guardianship proceedings related when distributing assets to minors.
• Disability planning to help avoid legal complications and let Special Needs beneficiaries stay on current benefits while also supplementing their additional needs to enrich their life
• Distribution of your assets is performed privately, without the oversight of the court or other government entities
• Avoiding probate in another state if you have real estate there
What are the Downsides of a Revocable Trust?
Revocable Trusts come with a higher up-front cost. However, that will be offset ten-fold by eliminating a hefty fee paid to attorneys and courts, and saving your beneficiaries the hassle and red tape of the probate process.
What If I Cannot Afford a Trust?
Although the Revocable Living Trust is an excellent tool for protecting your assets, an Essential Estate Planning package can accomplish many of the primary goals of setting up a terrific Estate Plan, including:
• Choosing who will be responsible for managing your estate
• Selecting an Agent to help manage your finances in the event you lose mental capacity
• Selecting an Agent who can access your medical record and make health care decisions in the event you lose mental capacity
• Controlling who receives your assets, instead of having them follow a rigid formula
• Providing instructions to your loved ones about specific assets
Please call us if you would like help protecting your assets and loved ones in the event of death or disability. You can call our Client Relations Specialist at 301-696-0567 during regular business hours, schedule online at lenaclarklegal.com, or speak to one of our 24-hour representatives after hours.