A revocable living trust is a very useful and popular estate planning device. There are a number of benefits that you gain when you create a revocable living trust, and we will look at a few of them in this post.
Incapacity is quite common among elder Americans. There are various different causes of incapacity, but Alzheimer’s disease is a leading culprit. Over 40 percent of people who are 85 years of age and older have contracted Alzheimer’s disease.
With a revocable living trust you can account for possible incapacity. When you are drawing up the trust agreement you can name a disability trustee. This individual or fiduciary entity would be empowered to administer the trust in the event of your incapacitation.
Probate is a legal process. In the state of New York probate matters are handled by the Surrogate’s Court. If you were to use a last will to arrange for the transfer of your assets, the will must be admitted to probate after you pass away.
The process of probate provides certain protections, and the state of New York does everything possible to provide an efficient probate process. However, there are some drawbacks to consider.
The probate process can be quite time-consuming. The heirs to the estate that are named in the last will do not receive their inheritances until the probate process has run its course. In most jurisdictions, simple and straightforward cases can pass through probate in approximately nine months to a year. More complicated cases can take much longer.
There are also expenses that accumulate during probate. Thirdly, probate is a public proceeding. Events that take place during probate become a matter of public record.
When you use a revocable living trust to transfer your assets, the probate process is not a factor. The trustee that you name in the trust agreement would distribute the resources that have been conveyed into the trust among the beneficiaries in accordance with your wishes.
The facilitation of probate avoidance is one of the major benefits that you gain when you create a revocable living trust.
No Loss of Control
Some people shy away from trusts because they don’t want to lose control of their assets. When you create a revocable living trust, you are called the grantor. The grantor of the trust can initially act as both the beneficiary and the trustee. As a result, you retain complete control if you create a revocable living trust. You can manage investments as the trustee, and you can take distributions as the beneficiary.
Because the trust is revocable, you can revoke or rescind it entirely if you choose to do so.
Living Trust Report
If you would like to learn more about revocable living trusts, download our free special report on the subject. You can access the report through this link: Free Living Trust Report.
- Proving Lack of Testamentary Capacity in a New York Will Contest - September 27, 2023
- How to Handle the Black Sheep Beneficiary in Your Estate Plan - September 13, 2023
- What Is a New York Durable Power of Attorney? - September 6, 2023