Many people think trusts are for the rich, but a revocable trust is about more than just your estate's size. A revocable trust can help you in different ways, and it is an effective tool for preserving wealth, reducing lifetime expenses, as well as protecting your assets and family.
Here are the benefits you can enjoy if you ask a lawyer to help you draft a revocable trust.
Benefits of a Revocable Trust
In simple terms, revocable living trusts, or revocable trusts, are written documents that dictate how one's assets will be handled after one dies. The assets can include valuable possessions, investments, bank accounts, as well as real estate. What sets this trust apart from other trusts is that you can cancel or change its provisions at any time.
Here are some of its benefits:
1. They are Flexible and Changeable
You can amend a revocable trust at your discretion. This flexibility can also help you if your circumstances change or you aren't sure who to name as beneficiaries. It also makes this trust popular among trustors that start their estate planning while young.
2. They Cover Your Assets Before You Die
The revocable trust names your trustee. This individual can take control and manage your assets if you are incapacitated. It can also manage guardianship. You can outline living situations as well as spending patterns for minors in the trust's terms.
3. They Avoid Probate
A will can subject your loved ones to lengthy court proceedings (probate) where a court divides your estate and assets per your stipulations. A revocable trust eliminates this process, saving time as well as resources for your beneficiaries.
4. They Offer Privacy
After you die, wills and their required transactions become public records. The public can see your will's stipulations, its beneficiaries, as well as their inheritance. Estates in a revocable trust are divided privately. This process also protects the privacy of your beneficiaries and assets.
5. Assets Under a Revocable Trust Get FDIC Protection
The Federal Deposit Insurance Corporation (FDIC) offers insurance of up to $250,000 for each beneficiary and the owner of a revocable trust account. The maximum insurable amount is $1,250,000, equal to $250,000 for the owner and four beneficiaries.
If you need help drafting or changing your revocable living trust, The Law Office of Andre Clark can help you. We are an affordable as well as a reliable law firm with years of experience handling revocable trusts. Contact us today to get our professional services.