Creating a Rhode Island Revocable Living Trust Made Easier!
A great estate plan ensures your loved ones don't struggle too much to get your estate after your death. You can write a will, but a will requires the estate to go through probate, subjecting to even more frustrations of waiting longer and spending much to have their share.
To ensure your estate is disbursed almost immediately after your demise, you should create a Rhode Island revocable living trust. Read on to learn more about a revocable living trust and how to create one.
What is a Revocable Living Trust?
A living trust, also known as inter vivos trust, is an estate planning document you create while alive, putting your assets in a trust. The document also names the rightful beneficiaries and successor trustees and outlines how the assets will be distributed after your death.
It may also include when the trust is disbursed to the beneficiaries, and you can manage all these by yourself. You also have the luxury of choosing a successor trustee to take over after your demise and ensure all your wishes are fulfilled accordingly.
The grantor (the person making the trust) can modify or cancel a revocable living trust. It is advisable to create a revocable trust to allow you to change it as you please at any time.
Do You Need a Revocable Living Trust in Rhode Island?
A completed and signed revocable living trust form in Rhode Island is crucial in estate planning. This document will ensure your estate bypasses probate, allowing your inheritors to get it quickly after your death. As a result, your heirs will save time and money they could have otherwise spent in the lengthy court process.
So, do you need a revocable living trust in Rhode Island? The answer varies, but it is critical to note that although Rhode Island has not adopted the Uniform Probate Code, they have simplified probate shortcuts. For instance, if your estate is worth $15,000 or less, your estate won't go through probate.
Your family can just use an affidavit to claim it. Alternatively, your loved ones can request an 'informal administration,' a probate shortcut that is quicker and less expensive.
Do You Need a Will After Creating a Revocable Living Trust in Rhode Island?
A will can be necessary for some situations, even if you already have a living trust. First, if you have not added all your assets to the trust, a will is necessary to name the assets (not in the trust) and outline who gets what after your death.
In addition, you will need a will if you have children under the age of 18 years. You can't name a guardian of the children in a living trust; you'll need a will for that.
Can a Revocable Living Trust Reduce Estate Taxes in Rhode Island?
Probably not. Please note that Rhode Island does collect state estate tax, but don't expect the taxes to reduce by just creating a living trust. However, you may worry about federal estate taxes if your estate is worth $12 million or more. But you can create a unique living trust such as AB Trust to reduce or avoid federal estate taxes.
Creating a Revocable Living Trust, the Smart Way!
There are some points to remember when creating a revocable living trust in Rhode Island. First, you need to decide on the properties and assets to put in the trust. Then, have a list of beneficiaries and choose a successor trustee to handle the trust after your demise.
Next, you should get the Rhode Island revocable living trust form and fill in the needed information and sign it before a notary public. Remember to transfer ownership of the properties to the trust.
Creating a revocable living trust in Rhode Island has been made easy by Forms.legal. We offer all types of revocable living trust forms that you can fill in, download and print when done. Our templates make creating a living trust agreement easier without the hassles of hiring an attorney.