What to Keep in Mind While Creating a Tennessee Revocable Living Trust Agreement
A living trust ensures your estate is managed and distributed correctly after death. You may think of writing a will, but a living trust will help your estate bypass the probate process, helping your family get the inheritance quickly and save money.
A revocable living trust agreement also offers flexibility, and you can modify it at any time to align it with your estate plan and wishes. Keep reading to learn more about making a living trust in Tennessee.
What is a Revocable Living Trust?
A living trust, also known as an 'inter vivos' trust, is an estate agreement you create while alive putting your assets in a trust and outlining how they will be distributed to the beneficiaries after death.
The agreement comprises assets, successor trustees, beneficiaries, and other information about how the estate will be managed and distributed. Ideally, aTennessee revocable living trust agreement can be modified or canceled by you (the grantor).
Do You Need a Revocable Living Trust in Tennessee?
Creating and signing a Tennessee revocable living trust form is essential to you and your beneficiaries. It ensures that your estate is distributed almost immediately after death, and your family saves time and money. The assets in the trust will bypass the probate, which is the ideal situation every family would want.
The probate issue is even more concerning in Tennessee since the state has not adopted the Uniform Probate Code. This means the probate process is not as streamlined as in other states. However, they have simplified processes your loved ones can use to get a share of their inheritance, even without a living trust.
For example, if your estate is valued at $50,000 or less, your estate should not go through probate. Your heirs can use an affidavit or request for a 'small estate administration' to get it quicker than the normal probate process.
Do You Still Need a Will after Creating a Living Trust in Tennessee?
Creating a living trust may not be enough to complete your estate plan. You will likely need a will in some situations. For instance, if you have not included all your assets in the trust, you will need the will to name them and outline how they will be distributed or managed after your death.
In addition, you will need a will to name the guardian of your minor children. But a will may not be necessary if you don't have minor children and have put all your assets in the trust.
Revocable Living Trust and Estate Taxes in Tennessee
Some people think creating a living trust in Tennessee can lower their estate taxes. But that is not true. Although Tennessee no longer collects estate taxes, people with estates valued at or more than $12 million pay federal estate taxes. But you can create a unique trust like the AB Trust to avoid or bring down your federal estate taxes.
Filling in a Revocable Living Trust Form
So, how do you create a Tennessee revocable living trust? It all starts by filling in the form correctly, and be sure to identify the assets you want to put in the trust and come up with a list of beneficiaries.
Then choose a successor trustee who will manage and oversee the disruption of the trust after your demise. Once you have the information, get a free sample form and fill it out with the data. Then sign it before a notary official and later fund the trust by transferring the assets to the trust.
Are you planning to create a revocable living trust in Tennessee and looking for the perfect place to start? If yes, Forms.legal got you covered. We offer easy-to-access free Tennessee revocable living trust forms. All you need is to fill in the form online, download and print it for signing.