There are many benefits when creating a revocable living trust, but first, it is important to understand what a trust actually is. A revocable living trust is a legal instrument that holds property and assets for the benefit of your loved ones. The person who creates the trust is called the settlor, grantor or trustmaker. The person who manages the trust (which most likely is the person who created the trust but passes on their powers once they die) are called trustees and the people who benefit from the trust are called the beneficiaries. The advantages for setting up a trust include avoiding probate court, saving on estate taxes, planning for possible future incapacitation and privacy.
One of the first steps in the estate planning process is to establish a revocable living trust which controls the disposition of your assets which has different advantages when compared to a will. The will and trust documents are similar, as both determine how your affairs, assets, and property should be handled and distributed after you pass away. However, the greatest benefit of choosing a revocable living trust, in addition to your will, is the fact that a trust avoids the probate process, while a will alone does not. Essentially, probate gives the court the power to decide how your assets are distributed, and it tends to be a lengthy and extremely costly procedure that can demand eight to twelve months (or longer) of court procedures before your family can inherit anything. By having a revocable living trust, the process ends up being significantly quicker, and only takes weeks to resolve. If you own property in other states, a revocable living trust will be especially advantageous as it can help your family avoid multiple probate situations.
Revocable living trusts are easy to set up, maintain, or even cancel, and are nearly impossible to contest in court, if created properly. Please contact the Law Office of Jason R. Ebacher, PLLC, to discuss your options and see if your revocable living trust is right for you.