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What is a Virginia Revocable Living Trust, and How Can It Help You in Estate Planning?
If you want your loved ones to have an easy time during succession, estate planning should always be in your mind. You need to create relevant documents that will ensure a seamless transfer of your assets to the rightful beneficiaries.
Creating a Virginia revocable living trust is the way to go, as it guarantees your peace of mind knowing that your estate will be distributed as per your wishes. Keep reading to learn more about revocable living trusts in Virginia.
What is a Revocable Living Trust?
A revocable living trust is a vital estate planning document that puts your assets in a trust. The document also details how your estate will be distributed after death. It also includes the successor trustee, who manages and oversees the distribution of your estate after you die.
Once you complete all the required information, you must sign the document before a notary official. The good thing about revocable living trust is that you can modify or revoke it anytime.
Benefits of Revocable Living Trust in Virginia
The main benefit of completing a revocable living trust form is to prevent your heirs from going through the time-consuming and costly probate process. That allows your family to avoid paying court fees and hiring estate planning lawyers to help them handle the process.
And it is vital to note that while Virginia is yet to adopt the Uniform Probate Code, the state offers a simplified process that can help your estate skip probate, making the process even simpler.
For example, if your estate is valued at $50,000 or less, it will not be subject to probate, even without a living trust. You may also use a transfer-on-death deed to ensure your home bypasses the probate process. But if you have more valuable assets, having a revocable living trust in Virginia is always advisable.
In addition, a living trust gives you ultimate control over your estate. You will continue to manage the assets in the trust, and when you die, your trustee will manage the estate and ensure it is distributed to the heirs as per your terms.
If You Create a Living Trust, Do You Still Need a Will?
Unique situations may require you to have a will even after creating a living trust. A perfect case example includes if you have minor beneficiaries, often requiring a will to name their guardian(s).
In addition, if you have valuable assets like retirement accounts or life insurance policies that you have not transferred to the trust, you should create a will—to outline how they should be managed and distributed when you die.
Estate Taxes and Living Trusts in Virginia
Most people usually ask if creating a living trust will reduce their estate taxes. But the simplest answer is no. Ideally, most Virginia residents do not have to worry about estate taxes, which only apply to estates worth $12 million or more.
But if your estate qualifies for federal taxes, you can minimize or avoid them by leaving it to the surviving spouse under a marital trust.
Steps to Create a Revocable Living Trust
If you want to create a revocable living trust in Virginia, there are some steps you must follow, including.
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Identify the assets such as bank accounts, life insurance policies, and real property you want to transfer to the living trust.
Name the beneficiaries and pick a successor trustee
Get the Virginia revocable living trust form and fill in the required information
Notarize the document by signing it before a notary official
Transfer ownership of the assets to your trust
The good news is that you don't need an attorney to help you with this process. You can do it all by yourself at Forms.legal. We offer all Virginia revocable living trust forms you can complete online, download and print for signing.