There are many reasons people planning for their estate would create a trust. While the most common of those reasons is the protection of assets, a revocable living trust also provides several other benefits. Many of these perks you may not have considered.
But first, what makes a trust revocable and living? The term revocable refers to the potential for change within the trust. As the grantor of the trust, you may control the assets within until your death. The living aspect of the revocable living trust is in reference to the grantor creating it while they are alive. So, in other words, this trust is a trust you create while living and have the power to revise according to your wishes for as long as you are alive.
So, what are the benefits of creating a trust like this? They include:
- Privacy: While there is nothing wrong with creating a will, they are public record. Trusts, however, are not public records.
- Protection: A trust is not perfect, but it can withstand legal issues more than other forms of estate planning and asset protection.
- Personal preference: The revocable aspect of this trust allows you to adjust details of the trust based on your wishes. If you set up the trust and then five years down the road decide you want to make changes, you have that power.
- Cheaper for your heirs: Administering your estate is much more cost-effective with a trust. That is largely because trusts bypass the probate stage of estate settlements.
Ultimately, whether you create a revocable living trust will depend on the details surrounding your assets and what you hope for them in the future. When it comes to estate planning, you have a lot of viable options.
