Have you ever had to worry about how your inheritance will get distributed to your beneficiaries after your death? It would help if you considered a revocable trust to help distribute your assets and ease the burden left on your heirs. A revocable trust allows you to exert some control over your assets and their distribution even when you are not around. You also get to protect the privacy of all the mentioned beneficiaries and their allocations. Read on to understand revocable trusts better and why you should consider taking one.
What is a Revocable Trust?
A revocable trust (sometimes called a family trust or a living trust) is a document that controls trust assets during a grantor’s lifetime and directs distributions to beneficiaries after the grantor passes away. Changes to the document can be made when the grantor is alive.
A family trust can be set up for two spouses. When one spouse becomes incapacitated, a revocable living trust will continue to hold the trust property for the benefit of both spouse. In a family trust one spouse dies, and the other often gains access to all the trust assets. After both spouses pass away, the helps pass the estate to the proper beneficiaries.
One significant reason most individuals prefer revocable trusts is to avoid probate court. The probate procedures involve proving the legitimacy of a will, and they can take months and cost a lot of money.
How Important is a Revocable Trust?
You Avoid Probate Court
One benefit of revocable trusts is avoiding probate court procedures. These procedures are time-consuming, expensive, and public, delaying the compensation of your beneficiaries. You can consider a revocable trust to avoid probate court and guarantee your assets will get distributed according to your wishes. If you have a revocable living trust one spouse dies, the heirs do not have to go through probate court.
Privacy Preservation
Privacy is always a concern for some individuals. A revocable trust ensures all your asset records and information are kept private after your death. You are not guaranteed privacy when your assets go through probate court, since all court proceedings are made public. It would be best to consider a trust attorney in San Jose, CA to enforce the privacy of your assets and beneficiaries.
Asset Segregation
A revocable trust is also the solution to wealth management between married couples. When both parties enter a marriage with prior wealth, the two can separate their assets with revocable trusts. Separate trusts help keep separate property, owned by one spouse alone, segregated from community property assets.
When is a Revocable Trust Relevant?
Mental Incapacity Preparation
If you foresee any potential mental disability, you should consider a revocable trust to help protect your assets. The document works regardless of your net worth, provided the assets mentioned are held in the trust. To ensure the trust is legally binding, you must be of sound mind when creating and transferring assets to the trust, including those on the asset list. The trust will help create a plan to manage your finances once you become mentally incapacitated.
If You Have Minor Beneficiaries
A revocable trust is also ideal if your primary beneficiaries are minors. It is common among young parents and helps decide how to manage assets until the minor comes of age. Without a trust, until the beneficiary turns 18, these assets are placed under court-supervised guardianship. Considering a San Jose, CA trust attorney will allow you to avoid unnecessary and burdensome court procedures and dictate the right age to receive the inheritance.
Single and Married People
Single people need a revocable trust as much as married couples do. The trust helps keep your assets out of court-supervised guardianship while providing your beneficiaries a hassle-free process if you are single. On the other hand, married couples should opt for revocable trusts to direct control of assets after one spouse passes away, and later, when both pass.
Property Outside Your State
You should consider a revocable trust if you own an out-of-state property. The trust will help cover all your properties and avoid separate probate estates when you die. Ancillary probate, common among individuals with real estate in more than one state, exposes your beneficiaries to numerous challenges before compensation.
How an Attorney Can Help
It would help if you considered a trust lawyer in San Jose to guide you through all the legal processes and terms involved in revocable trusts. Keyes Law Group is an established Milpitas trust attorney team with your best interests at heart. You are guaranteed quality and seamless asset management and distribution not offered by any other trust attorney San Jose, CA. Contact us for legal advice on revocable trusts and other real estate questions.