Many people have heard about Revocable Living Trusts (RLTs), but not everyone understands the actual reasons and benefits behind having one. Understanding the benefits of Revocable Living Trusts is the best way to identify whether a Revocable Living Trust is right for you. RLTs are not the same as Irrevocable Living Trusts, Charitable Trusts, or Qualified Terminable Interest Property (QTIP) Trusts. Those are covered in different articles on this legal blog.
A Revocable Living Trust (RLT) does several things:
- It holds assets in its own name for the use and benefit of designated people or organizations. (convenient)
- It allows for assets to be transferred to new owners upon the death of a person without probate court or a probate lawyer being involved. (saves money)
- It designates beneficiaries who can have access to the assets under very specific conditions spelled out in the Trust document. (clarifies owner wishes)
- It specifies how assets are to be managed during lifetimes and then distributed upon death. (creates a wealth management plan)
A Revocable Living Trust is often used by:
- Couples who fear that one or both of them might become incapacitated at some point in the future and want to ensure their assets are managed properly during their incapacitation.
- People who have children or other non-spouse beneficiaries who they’d like to see inherit their assets (such as a home and/or other property, savings accounts or checking accounts, securities, vehicles, and other valuables) without having to pay large fees to attorneys or the court and without having to wait long periods of time for the assets to transfer.
- People who own property in more than one state.
- People who own property in addition to their personal residence.
- People with high net worth as a wealth management tool.
- People who want to keep the inventory of their assets private.
A Revocable Living Trust is best used as part of a whole Estate Planning package that’s tailored to your unique situation and the state where you reside. If you’d like to learn more about whether a Revocable Living Trust is right for you, please complete our INTAKE FORM and we will get with you within 24 hours, Monday-Friday.