The Benefits of Using a Revocable Living Trust in Connecticut
You are probably wondering why you would want to use a revocable living trust in Connecticut. After all, isn't a will good enough? Revocable living trust for Connecticut residents can offer many benefits that a Will cannot. Continue reading for more details.
What Is A Revocable Living Trust?
A revocable living trust is a legal document that gives the trustee (the person who manages the trust) control over your assets. The trustee can use the assets for your benefit during your lifetime. After you die, the trustee can distribute the assets to your beneficiaries according to your wishes.
Why Use A Revocable Living Trust?
The truth is a revocable living trust offers several key advantages over a Will. For one, a revocable trust can help you avoid probate.
Probate is the legal process after you die where your assets are distributed according to your Will. If you don't have a will, your assets will be distributed according to state law. Probate can be a long and expensive process, and you can use a revocable living trust to avoid it.
Another advantage of using a revocable living trust is that it can help you keep your affairs private. Probate is a public process, meaning anyone can see your assets and who will inherit them when you die.
If you use a revocable trust, on the other hand, your assets will not go through probate. This means that your affairs will be private.
Finally, revocable living trusts can help you manage your assets if you are incapacitated. If you become incapacitated and don't have a revocable trust, someone will need to be appointed by the court to manage your assets for you.
If you have a revocable trust, on the other hand, the trustee you appointed will be able to step in and manage your assets for you.
Do I Need A Revocable Living Trust In Connecticut?
There is no right or wrong answer to this question. Whether or not to use a revocable living trust depends on your circumstances and preferences.
Suppose you want to avoid probate, keep your affairs private, or ensure your assets are managed in the event of incapacity. In that case, a Connecticut revocable living trust might be right for you.
On the other hand, if you are okay with going through probate or having your affairs made public, then a revocable trust might not be necessary.
A revocable living trust in Connecticut is highly critical because the state hasn't adopted the Uniform Probate Code. What does this mean? The probate process is not easy, but you can still take advantage of the simplified probate process for small estates.
But using the simplified probate process can be a perfect option only if your property does not include real estate and is valued at $40,000 or less.
It cannot also go without mentioning that creating a living trust doesn't mean reduced estate taxes. Though Connecticut has its state estate tax, the federal estate tax is levied on properties valued at $12 million ($24 million for married couples). You can only avoid estate taxes using more complicated processes such as AB trust.
How Do I Create a Revocable Living Trust in Connecticut?
If you decide that a revocable living trust is right for you, the next step is to create the trust. You can do this by working with an experienced estate planning attorney or using an online trust-creation service.
You will need to name a trustee and decide how your assets will be distributed after you die. You will also need to fund the trust by transferring your assets.
Once the trust is created, you can change it at any time. This flexibility is one of the main advantages of using a revocable living trust.
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