In five years, do you think you will have the same desires for your assets and properties? What about in ten years? While developing foolproof estate plans may require some elements of irrevocability, a revocable trust may be necessary for certain assets. There are several reasons why you might want to create a revocable living trust.
You have the control
The term “living” refers to the creation of the trust while you are living. This way you may ensure that the assets go to the person whom you intend for them to go. The term “revocable” refers to the fact that your trust will allow you to change it as your desires change throughout the years. Do you have qualms with your trustee that you did not have when you started the trust? Name a new person.
It may save your loved ones a headache
A good estate plan may make probate an easier process should you decide to draft a will. However, many things can come up for your beneficiaries to make the probate process lengthy and costly. Assets in a trust skip the probate process. Furthermore, matters of probate and the settlement of an estate become public records. Terms of your revocable living trust, however, will remain private.
Is a trust right for your situation?
Of course, just like other methods of protecting your assets, revocable living trusts are not perfect. They cannot, for example, protect you from a creditor forcing you to terminate the trust so that you may give up your assets to cover your debts. That said, if you are looking to have some control over assets for years to come while still protecting them and providing convenience for your loved ones, a revocable living trust may be for you.