What You Need to Know About New Mexico Revocable Living Trust?
Are you considering creating a revocable living trust but still hesitant? With this document, you can designate beneficiaries in your trust and ensure they receive the property when you pass away in New Mexico.
This is often a perfect alternative to a will, as it saves your inheritors from the usually cumbersome probate process. By choosing this option, you simplify transferring your possessions for yourself and those who will inherit them.
A revocable living trust is a popular choice among those creating an estate plan. What's great about it is that it can be modified or canceled at any time. If you set up a revocable living trust, you are typically named the trustee, which gives you complete control of your property and assets during your lifetime.
Furthermore, you will also appoint someone (the successor trustee) to manage and distribute the properties on your behalf. Here are the additional details about a New Mexico revocable living trust.
Why You Need a Living Trust in New Mexico?
One of the biggest benefits of setting up a living trust is that it saves your beneficiaries from spending too much time and money on probate. If you plan your property correctly, it will not have to go through the lengthy and expensive probate process. Your beneficiaries can receive their inheritance without delay and the need for a lawyer.
But it is vital to note that New Mexico has adopted the Uniform Probate Code, making the probate process more manageable. In addition, the state offers a summary of administration, a shortened probate process that applies to estates that do not exceed specific allowances outlined by the law.
If these options don’t apply to your case, having a revocable living trust in place is an excellent idea.
Why You Need a Will After Creating a Revocable Living Trust in New Mexico?
Though having a living trust allows you to transfer property after death without going through the probate process, having a will is still important. A will is an essential part of estate planning, and it lets your family know exactly how you want your assets to be distributed when you pass away.
Without a will, the probate court decides who gets what. A will also allow you to appoint guardians for any minor children and ensure they are looked after in the event of your death.
If you lack a will, all of the details regarding the care and upbringing of your children will be decided by a court, which in most cases may be something you didn’t wish to happen.
Is It Possible for a Living Trust to Reduce Estate Tax in New Mexico?
A living trust might not reduce estate tax in New Mexico since most people are not concerned about federal estate taxes. The federal estate tax applies only to estates worth $12 million, and in addition, New Mexico does not have an estate tax.
Therefore, if you have an estate worth more than $12 million, you might be required to pay federal estate taxes. However, consulting with a qualified estate planning attorney is essential to understand the federal and state-specific laws about revocable living trusts and estate planning.
Making a Living Trust in New Mexico
Creating a revocable living trust in New Mexico is pretty simple. And here are some essential things to keep in mind while at it.
Decide whether you are creating a shared or individual trust
Choose the properties to include in the trust
Name your successor trustee
Name the trust beneficiaries
After these critical steps, sign the document before a notary public, and it will be ready.
Another essential thing to note is that you don't have to consult an attorney to do these things for you. You can simplify this process at Forms.legal as you take advantage of our printable revocable living trust forms. We offer all revocable living trust forms in New Mexico and are committed to helping maneuver the possibly costly attorney process.