Should I Have a Revocable Living Trust in My Estate Plan?
A revocable living trust serves as an important estate planning document designed to protect your assets during your lifetime and facilitate their transfer to beneficiaries after death.
Key Benefits
The primary advantage of establishing a trust is avoiding probate. By placing significant assets into a trust, you can ensure they pass to designated beneficiaries under your chosen conditions without undergoing a lengthy probate process.
The Funding Requirement
Simply signing trust documents isn’t sufficient. A revocable living trust only becomes effective when properly “funded” – meaning assets must be transferred into it. This can include real estate, financial accounts, life insurance, annuities, personal property, and business interests.
Real Estate Considerations
Your home, potentially your largest asset, can benefit significantly from trust placement. Trusts facilitate quick real estate transfers and help avoid separate probate proceedings for properties held across different counties or states. However, mortgaged properties must be retitled in the trust’s name, and some lenders may resist this change.
Financial Assets That Can Be Held in Trust
- Bonds and stock certificates
- Non-retirement brokerage and mutual fund accounts
- Money market accounts, checking, and savings accounts
- Annuities and certificates of deposit
- Safe deposit boxes
Conclusion
While establishing a trust involves initial complexity and expense, it significantly simplifies the inheritance process for your beneficiaries. Working with an experienced estate planning attorney ensures your trust functions as intended.
If you have questions about whether a revocable living trust belongs in your estate plan, contact The Stegall Law Firm to schedule a consultation. We can help you evaluate your options and build a plan that protects your family and your legacy.
