There are several ways you can plan for your future, including investing in the creation of a revocable living trust. This document is not only for those with large estates and it can help your heirs and family members avoid the difficulty of probate court, which is often necessary to divide property if you should pass without a will or living trust in place. If you want to create a revocable living trust, there are a few questions you can ask your attorney that may make the process simpler.
1. How Is a Living Trust Different from a Will?
While wills and revocable living trusts are both documents related to the distribution of your estate, they are not the same. You may have each, or you may decide to have only one of these documents in place. The main difference between the two is that a revocable living trust can be changed over time by you, the grantor, and any modifications you make remain flexible. These changes might include who you name as trustee, the addition of new heirs, or the omission of those you no longer wish to include, such as an ex-spouse.
2. What Does a Revocable Trust Cover?
A living revocable trust can include a variety of factors involving your estate, your medical status and your heirs. For example, if you become incapacitated due to a stroke or other sudden problem that affects your ability to make decisions, you can name an individual to take over all future decisions involving your medical care, including any advanced directives. It can also cover circumstances for minor heirs, which you would have the ability to change as they come of age.
3. Which Assets Can I Include?
As you set up your revocable living trust, it is important that you include all assets you wish to pass on in the future. You can include real estate, retirement accounts and bank accounts within the trust so your heirs do not have to move through probate before they can benefit from your gift. Your attorney can help you decide which assets to include in your document.
4. How Do I Choose a Trustee?
One important decision to make with your living trust is who to name as trustee. Because this individual will be responsible for holding the assets, consider naming someone who is both trustworthy and whom you can depend on, such as a spouse or your eldest adult offspring. You can also name your lawyer as a trustee.Creating a revocable living trust can leave you with many questions, but there is help available. Contact an estate planning lawyer, like from Yee Law Group, today for further information.