Frequently Asked Questions about Georgia Revocable Living Trust
A Georgia revocable living trust is an agreement between two or more people that sets out how assets will be managed and distributed during their lifetime and after death. Grantors can revoke or amend this type of trust anytime, making it a very flexible estate planning tool. Here is an outline of frequently asked questions about Georgia revocable living trust.
What is a Revocable Living Trust?
A Georgia revocable living trust is a legal arrangement in which assets are held and managed by one or more trustees to benefit another person, typically the grantor's spouse, children, or other beneficiaries. The grantor is the person who creates the trust and transfers ownership of their assets into it.
The trustee is responsible for managing the trust property and distributing it according to the terms of the trust agreement. The beneficiaries are the people who benefit from the trust, either during the grantor's lifetime or after their death.
How Does a Revocable Living Trust Work?
Revocable living trusts in Georgia can be created for any reason, including estate planning, asset protection, tax savings, and avoiding probate. When creating a Georgia revocable living trust, the grantor transfers ownership of their assets into the trust.
The trustee then manages these assets according to the terms of the trust agreement. The beneficiaries can be named in the trust agreement and receive the assets either during the grantor's lifetime or after death.
What Are The Benefits of a Revocable Living Trust?
There are many benefits to creating a Georgia revocable living trust, including avoiding probate and protecting your assets.
Probate is a court-supervised process that can be time-consuming and expensive. When the grantor of a revocable living trust dies, their assets do not have to go through probate. By avoiding probate, your loved ones will be able to receive their inheritance more quickly and without the added stress and expense.
Protecting your assets is key to preserving your wealth. A revocable living trust agreement can help protect your assets from creditors, lawsuits, and estate taxes because it automatically becomes irrevocable when you die. This also means that your beneficiaries will receive the assets according to the terms of the trust without going through probate.
How Do I Create a Revocable Living Trust?
Creating a revocable living trust is not a complex process. You will need to choose a trustee, transfer ownership of your assets into the trust, and create a trust agreement that outlines the terms of the trust. It is important to consult with an experienced estate planning attorney to ensure that your trust is properly created and funded.
So, Do You Need a Revocable Living Trust in Georgia?
You now know the many benefits of creating a revocable living trust. And in Georgia, you will have no alternative but to ensure that you create your trust. That is because the state still needs to adopt the Uniform Probate Code, meaning probate is complex.
Nevertheless, you will note that the state has adopted a simplified probate process for limited estates. So, your estate can qualify for this probate shortcut, all while eliminating the need for a living trust. But this can only work if you have no Will, no debts or creditors, and the heirs agree on how to share the assets.
Another issue to note is that having a living trust in Georgia will less likely reduce your estate taxes. Georgia doesn't have its estate tax, and at the same time, the federal estate tax levies only go for estates estimated at the cost of $12 million. Therefore, most people don't have to worry about taxes, whether they have a living trust or not.
Are you thinking about creating your Georgia revocable living trust? Forms.legal offers free forms you can fill in and download to prepare your document.