A Revocable Living Trust is a legal entity that is created to hold ownership of an individual’s property and assets. Below are some of things that a Revocable Living Trust can do:
- Avoid Conservatorship and Guardianship Proceedings. A revocable living trust allows you to authorize your spouse, partner, child, or other trusted person to manage your assets should you become incapacitated and unable to manage your own affairs. Wills only become effective when you die, so they are useless in avoiding conservatorship and guardianship proceedings during your life.
- Bypass Probate. Property in a revocable living trust does not pass through probate. Property that passes using a will guarantees the probate process, which can be costly and time consuming – sometimes taking years to resolve.
- Name Beneficiaries and Provide Control. Trusts are vehicles which allow you to name beneficiaries for your assets and provide control as to how and when the assets are distributed to the beneficiaries.
- Maintain Privacy After Death. Wills are public documents; trusts are not. Anyone, including nosey neighbors, predators, and unscrupulous “charities” can discover the details of your estate if you have a will. Trusts allow you to maintain your family’s privacy after death.
- More Protection From Court Challenges. Although court challenges to wills and trusts occur, attacking a trust is generally much harder than attacking a will because the trust provisions are not made public.
- Provide Asset Protection. Trusts are crafted to include protective sub-trusts which allow your beneficiaries access but keep the assets from being seized by their creditors such as divorcing spouses, litigants, or bankruptcy trustees.