Revocable trusts are a valuable estate planning tool that is not as commonly used as a will, but can be quite beneficial. Revocable trusts allow you to distribute your property to beneficiaries you choose throughout your lifetime. With this type of trust, you can distribute property to individuals you care about once you pass away.
Revocable trusts share the flexibility that a will allows in that you can specify what property you want your beneficiaries to receive. You can also, like a will, disinherit certain relatives of your choosing.
A distinction between the two is that after you pass away, your loved ones will receive a transfer from a trust quicker than they would through a will because the trust does not have to go through the probate process.
With a trust, one person has possession of property for the benefit of another. The trustee is a person you name in the agreement who will be responsible for managing the trust. The beneficiary is the subject of the trust who will benefit from it. Although the trustee holds legal title of the property within the trust, the beneficiary is the one who will receive the benefits of the trust.
With a revocable trust, the creator will be able to amend its terms at any time, or even completely dissolve it, until his or her death. Once the grantor passes away, the trust becomes irrevocable and is then passed to the beneficiaries. A result of this, however, is that it is subject to taxation.
To alter the revocable trust, the creator of the document will need one of the following:
The amendment and restatement is necessary when there is a significant change, such as:
There are several advantages to getting a revocable living trust. All of the following advantages are good for not only you, but your beneficiaries as well.
If you wish to discuss your options and to see if a revocable trust is right for you and your family, reach out to Davidov Law Group today. We offer our time and assistance to help make a difference in the lives of families throughout Nassau County. Our goal is not to push our agenda on you, but to help you know your options and make the right choice. Do not wait to get the assistance you need. Contact us today!
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