When it comes to choosing a revocable trust instead of a will, every decision should come down to your personal concerns when it comes to your estate.
This post will detail the differences between a revocable trust and a will, and some reasons choosing a revocable trust may be right for you.
Whichever type of estate plan you choose, consult with a family trust asset protection expert in Tamarac to weigh your options.
What is a Revocable Trust?
A revocable trust can be created by you to manage assets during your lifetime and after your death. The person who creates the trust is known as the “grantor” and the person responsible for the management of assets is known as the “trustee”.
While the grantor can also be the trustee, many people often appoint another person, bank, or other living trust asset protection expert in Hollywood as trustee.
Since the trust is revocable, it may be modified or terminated throughout your lifetime, unless you become incapacitated. Most trust agreements will allow the grantor to withdraw assets from the trust at any time.
Should you become incapacitated, the trustee or living trust asset protection expert in Hollywood is authorized to continue to manage your assets, pay your bills, and make investment decisions.
Upon your death, the trustee is responsible for paying all taxes and claims then distributing your assets to the beneficiaries described in the trust documents.
Another estate planning technique that living trust asset protection experts in Hollywood specialize in is wills, which are outlined below.
What is a Will?
A will is a legal document that details your wishes in regards to asset distribution following your death. While each will vary, family trust asset protection experts in Tamarac typically see them include bank balances, prized possessions, and property beneficiaries.
When a will is prepared, an executor is named. The executor should be a spouse, adult child, or other trusted friend or family member. Executors are typically responsible for the distribution of assets, payment of bills and taxes from the estate, appearance in court on behalf of the estate, and maintenance of any property in the estate.
For those unfamiliar with estate planning and the legal system, revocable trusts and wills may sound similar to each other. To learn more about the main differences between revocable trusts and wills, continue reading.
Revocable Trust vs. Will: Key Differences
The largest difference between a revocable trust and a will is that revocable trusts become active the day they are created, whereas a will becomes active only after one’s death. Both revocable trusts and wills can be modified during the lifetime of their creator, but trusts are more actively managed.
Property left through a revocable trust does not have to go through probate, but property left through a will does. Probate is the judicial process whereby a will is proved in a court of law to be validated and verified.
After death, a will becomes a public record, whereas a trust does not. For some people that wish to keep their affairs private, choosing a trust is the best way to go.
The differences between a revocable trust and a will may seem small, but to some people, these differences are the deciding factors for their estate plan. If you are interested in possibly creating a family trust asset protection plan in Tamarac, read some of the top benefits of a revocable trust that are listed below.
1. Avoiding Probate
Since the grantor of a revocable trust appoints a living trustee, there is no need to go to probate, as the trust owner and trust are still alive. Probate can be a stressful, costly, and time-consuming process for your loved ones to endure following your death, so avoiding it altogether is an appealing benefit of revocable trusts.
If you own property in more than one state, a revocable trust may be a better choice than a will, as each state has different probate proceedings.
To learn more about what goes on during probate, speak to a living trust asset protection expert in Tamarac.
2. Management During Disability
Since living trust asset protection plans in Tamarac are valid while the grantor is still alive, revocable trusts can be very helpful in cases where the grantor becomes mentally or physically incapacitated.
The trustee or successor trustee of the revocable trust will manage the grantor’s finances and property if the grantor is unable to do so, but the property would not yet transfer to the beneficiaries.
3. Protection of Privacy
As mentioned above, revocable trusts do not become public records like wills. Nobody besides your beneficiaries is entitled to see your trust documents unless an heir or beneficiary files a lawsuit to challenge the validity of the trust.
On the other hand, will become a matter of public record as soon as they are submitted to the court to begin probate. The public is entitled to see the assets in your will, as well as who you left the assets to.
While both revocable trusts and wills are able to be modified, living trust asset protection experts in Tamarac suggest revocable trusts are much more flexible when it comes to making changes.
Creating a revocable trust instead of a will makes it easier for the grantor to name unrelated or out-of-state individuals to act as the primary trustee of property and assets after your death. As mentioned before, wills have to go through probate, which is different in every state.
OC Estate Lawyers
Estate plans should be tailored to meet the specific needs and wishes of the creators and their loved ones. Creating an estate plan can be stressful for all people involved, which can be made better by working with Fernando Orrego and Natasha Chipiga at OC Estate and Elder Law.
OC Estate and Elder Law services the South Florida area and has expertise in all areas of estate planning and the probate process. Fernando and Natasha are committed to providing honest advice to their clients and their clients’ loved ones throughout the estate planning process.
For More Information :- https://ocestatelawyers.com/