Probate is a lengthy and sometimes needlessly expensive process. The Probate process has a minimum waiting period before assets can be distributed and often probate cases take up to a year or more to resolve.
Additionally, the personal representative of your estate (your executor) must be represented by an attorney. Therefore, attorney fees will be paid from your estate before your beneficiaries receive any inheritance. It’s all your money, why not leave it to loved ones instead of the lawyers?
Your living trust can provide you with protections in the event of your incapacity, whether physical disability or mental incompetency. Without a trust, someone would have to apply to the court to be your legal guardian or conservator. This is often referred to as a living probate because it is handled through the court’s probate department and probate judges.
As the name implies, revocable trusts are fully revocable at the request of the trust maker. Thus, assets transferred (or “funded”) to a revocable trust remain within the control of the trust maker; the trust maker (or trust makers if it is a joint revocable trust) can simply revoke the trust and have the assets returned. Revocable trusts can be excellent vehicles for disability planning, privacy, and probate avoidance.
REVOCABLE LIVING TRUST based estate plan provides instructions that will allow you to:
- Control your property while you are alive
- Take care of you and your loved ones in the event of disability
- Pass your property to your heirs when and how you want while maintaining privacy
- Ensure that you and your spouse have sufficient assets to maintain your standard of living now and in retirement.
- Maintain maximum control and flexibility during your lifetime.
- Provide for you in the event you become disabled
- Simplify administration as much as possible upon your death or disability (avoiding probate & guardianship).
- Avoid having your private matters being made public unnecessarily.
- Ensure that the efforts you desire are used to save your life.
- Have your property continue to benefit the survivor after one of you dies.
- If married, protect your assets so that they cannot be lost as a result of remarriage after the death of one of you.
- Ensure that the persons you select in fact become the guardians of your minor children.
- Protect your children’s or grandchildren’s inheritance from mismanagement.
- Structure your children’s or grandchildren’s inheritance in such a way that it installs values and virtues.
- Educate your children and grandchildren.
- Reduce the risk of litigation from heirs who receive less than they think they are entitled to.
- Minimize income taxes to the extent possible.
- Avoid or minimize capital gain tax on the sale of assets.
- Eliminate as much estate tax as possible.