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What Are the Benefits of Revocable Living Trusts?

Posted on in Estate Planning

Chicago living trust lawyerThere are a variety of steps that you can take to ensure that you and your family are prepared for the future. A revocable living trust is a popular estate planning tool that can be used to manage your assets and protect your loved ones after your death. With a revocable living trust, you can maintain control over your assets during your lifetime and specify how you would like those assets to be distributed to different beneficiaries. With the help of an experienced attorney, you can determine the best steps to take to address the current and future needs of your family.

Advantages of Living Trusts

A trust is a legal entity that can hold ownership of your assets. When you create a trust, you will transfer assets into the trust, and you will provide instructions that will be followed by a trustee regarding how assets should be distributed to your beneficiaries. With a living trust, you may serve as the trustee, which will allow you to maintain control over your assets. You can also make yourself a beneficiary, which will allow you to use your assets to meet your own needs. Since a living trust is typically revocable, you will be able to modify the terms of the trust at any time. After your death, a successor trustee that you have chosen will assume control over the trust's assets, and they will follow your instructions regarding the distribution of the remaining assets to beneficiaries.

Revocable living trusts can provide multiple benefits, including:

  • Avoiding probate - If you do not have a trust in place, your assets will have to go through the probate process before they can be distributed to your loved ones. Probate can be a lengthy and expensive process, so avoiding it can be a huge benefit. One of the main benefits of a revocable living trust is that it will allow your trustee to distribute your assets according to your instructions without having to go through probate court.

  • Maintain privacy - When you die, the terms of your will become a part of the public record, meaning anyone can access this information. However, trusts are not public records. If you would prefer to keep the details of your estate private, a trust may be a better option for you. With a trust, the only people who need to know about the contents of your trust are the trustee and the beneficiaries. 

  • Flexibility - You can change the terms of a revocable living trust at any time as long as you are alive and competent. This means that you can make changes to who will receive your assets when you die. You can also change the trustee or cancel the trust entirely if you choose to do so. This flexibility can be very helpful if your circumstances change over time.

  • Asset protection - A revocable living trust can help to protect your assets from creditors. If you are concerned about creditors taking advantage of your estate after your death, placing your assets in a trust can help to protect them. Once your assets are in the trust, they are no longer considered part of your estate, and they cannot be touched by creditors. Transferring assets into a trust can also help reduce the value of your estate, which may allow you to minimize any estate taxes that would apply after your death. 

Contact Our Beverly, IL Revocable Living Trust Attorney

As you can see, there are many benefits to using a revocable living trust in your estate planning process. If you are thinking about setting up a trust, be sure to consult with an experienced Chicago living trust lawyer at The Marques Eason Law Group. We can help you determine whether a revocable living trust is right for you and your family, and we can ensure that your estate planning documents are properly prepared and executed according to state law. Call 312-973-3755 to arrange a consultation today.

Sources:

https://www.investopedia.com/articles/pf/06/revocablelivingtrust.asp

https://www.thebalancemoney.com/what-is-a-revocable-living-trust-3505191

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