The Secrets to Creating a Pennsylvania Revocable Living Trust Correctly
Having an estate plan in place is one of the best things you can do for your family to ensure they avoid a complex succession process. If you don't have a perfect plan, your loved ones will spend a lot of money to get your estate.
In addition, they may take longer to get what they are entitled to. You can write a will, but creating a Pennsylvania revocable living trust is better. Read on to learn the secrets to making the estate planning document correctly.
What is a Revocable Living Trust?
A living trust is a document you create to plan your estate while alive. You make a trust and transfer assets to it. You then name your beneficiaries and a successor trustee who will manage and oversee the distribution of assets to the beneficiaries upon your death.
You may also add information about when the trust should be disbursed after your death. It can be immediately or after some months.
In simpler terms, the grantor can modify or change a revocable living trust. The grantor can also cancel or revoke it at any time.
A Pennsylvania revocable living trust is a better option as it gives you flexibility and control if you want to change your estate plan.
Do You Need a Revocable Living Trust in Pennsylvania?
Making a revocable living trust is essential to you and your heirs. First, the estate planning document allows you to outline how your estate will be distributed, and the successor trustee ensures that your wishes are carried out after your death.
In addition, a revocable living trust allows your family to avoid the probate process, which can take much of their money and time. Assets left under a living trust don't go through probate.
But you must note that Pennsylvania has not adopted the Uniform Probate Code; they have probate shortcuts for smaller estates. If you have an estate valued at or less than $50,000, your heirs can use a simple affidavit to claim the assets.
Alternatively, they can request settlement of the small estate, and if the estate goes through probate, the process will be less expensive and quicker.
After Making a Revocable Living Trust, Do You Need a Will?
Creating a living trust may not be enough to streamline your estate plan. You might need a will. For example, if you have properties and assets not transferred to your living trust, writing a will to name the properties and outline how they will be shared upon your death is necessary. Besides, if you have minor children or heirs, you should write a will to name their guardians.
Can a Living Trust Lower Estate Tax?
Probably not. But you should not worry about estate taxes because Pennsylvania doesn't impose estate taxes. But you must pay federal taxes if your estate is worth over $ 12 million.
Creating a living trust may not lower your taxes. But you can create a more complicated living trust like AB Trust to avoid or reduce the federal estate taxes.
Steps to Creating a Revocable Living Trust in Pennsylvania
There are essential steps to follow when drafting a revocable living trust.
Decide whether to create a shared or individual revocable living trust.
Choose assets and properties to put in the trust.
Name beneficiaries and choose a successor trustee.
Get a free trust template for Pennsylvania, fill in the required information, and sign it before a notary public.
Transfer ownership of the assets to the trust to reflect that you own the assets in the trust.
If you want to make a revocable living trust in Pennsylvania, Forms.legal can assist you. We offer free revocable living trust forms. You only need to complete the form online, then download and print it.