A revocable living trust can be a great tool for anyone who wants to organize their assets while staying in control of their finances. Some trusts take control away from you, but this trust keeps your hands on the steering wheel. This kind of trust can also offer a few other benefits that make it well worth the time and expense required to set it up. Here’s why you may want to ask a Woodland Hills trust attorney about a revocable living trust.
How Exactly Does a Revocable Living Trust Work?
When you open up a revocable living trust, you place any assets that you want to place in there as long as the laws or rules concerning the asset allow it. Some things cannot be placed in a trust. As examples, we can say that most retirement accounts remain separate and state law prevents California residents from putting a motor vehicle into a trust.
You pick a trustee to be in charge of your revocable living trust, but revocable is the key word here. It means that, unlike with some trusts, you still have control over your finances. You can change the rules of your trust at any time. Get a new trustee. Withdraw from your trust or fund it. Dissolving the trust entirely is also an option.
Why Should I Put My Assets in a Revocable Living Trust?
A revocable living trust offers benefits aside from control over your finances. This type of trust will:
- Allow your family to avoid the probate process
- Make it easier to leave certain assets to specific beneficiaries
- Prevent a court from controlling the inheritance of minor children
- Offer some tax benefits, with proper planning
- Avoid accidental disinheriting
Essentially, a revocable living trust gives you control over assets while you are alive and after you pass away, and that can make things easier for your family members and loved ones.
Are There Any Potential Drawbacks to This Kind of Trust?
These types of trusts are flexible, but they do cost some money to set up. However, the probate process also costs money. Would you rather spend money and make a plan for your assets now or have your family pay court fees later on?
A trust also requires attention. If you forget to place new assets in the trust, then they will have to go through probate when you pass away. So you really need to stay on top of your finances or have people who will handle these matters for you.
Schedule a Consultation With Our Estate Planning Attorneys
When you are ready to build your estate plan, contact the Law Offices of Yacoba Ann Feldman. We can tailor a plan to suit your needs and help you find estate planning tools that are the right fit for you.
