Estate planning is crucial. One estate planning vehicle worth considering is a revocable living trust. The first step in the process of determining whether establishing a revocable living trust is the proper course is understanding the essential elements of this type of trust.
Three Primary Reasons for Establishing a Revocable Living Trust
The reasons a person may need a revocable living trust are unique to his or her situation. However, there are three primary, common reasons why an individual may desire to establish a revocable living trust.
The first primary reason to establish a revocable living trust is to provide for loved ones but to protect them from their own thoughtless acts when it comes to finances. The reality is that oftentimes when an individual obtains money through the estate process, those funds are spent quickly and even irresponsible. A revocable living trust lessens the likelihood that this reckless use of funds occurs.
The second primary reason to establish a revocable living trust is avoiding the probate process. The probate process can be time consuming and expensive. By eliminating the probate process, the beneficiaries of the trust save time and money.
The final primary reason to establish a revocable living trust is to lessen tax obligations. Probating an estate is not only expensive and time consuming in and of itself, it also oftentimes results in a sizable tax liability.
How to Fund a Revocable Living Trust
There are a variety of ways in which a revocable living trust can be funded. Financial accounts of all types can be included in a trust. These include bank account and investment accounts.
Real estate can be included in a revocable living trust. This can include residential as well as commercial property. An estate lawyer is experienced in assisting a person in identifying what property can and should be included in a revocable living trust.
Retaining a Lawyer for a Revocable Living Trust
There are estate attorneys that focus on creating revocable living trusts. A qualified attorney can schedule an initial consultation with a prospective client to discuss that individual’s estate planning goals and objectives, including whether establishing a revocable trust is the proper course to take. An estate lawyer does not charge a fee for an initial consultation.