Imagine if something happened to you and you couldn't make decisions for yourself. You never know when you might become incapacitated or pass away. This is why it's crucial to have a revocable living trust. A revocable living trust will ensure that your assets are distributed according to your wishes and that your loved ones are taken care of.
What Is A Revocable Living Trust?
A revocable living trust is a legal document that allows you to control how your assets will be managed and distributed in the event that you become incapacitated or pass away. You can name a trustee to handle your affairs and specify how you want your assets to be distributed. You can also revoke or change the terms of the trust at any time.
Why Do I Need a Revocable Living Trust?
Revocable living trusts are an essential part of estate planning. There are many benefits to having a revocable living trust, including the following:
Avoiding probate: Probate is the legal process of distributing a person's assets after death. If you have a revocable living trust, your assets will not have to go through probate. This can save your loved ones time and money.
Protecting your privacy: Probate is a public process, which means that the details of your estate will be available to anyone who wants to see them. If you have a revocable living trust, your affairs will be private.
Keeping control of your assets: If you become incapacitated, your trustee will manage your assets according to your wishes. Having trust gives you peace of mind knowing that your assets will be managed the way you want. If you don't have trust, the court will appoint a guardian to make decisions for you.
How Do I Set Up A Revocable Living Trust?
Setting up a revocable living trust is relatively simple. You'll need to draft a trust agreement, which will specify the terms of the trust. You'll also need to transfer ownership of your assets into the trust. Once you've done that, you can name a trustee and specify how your assets will be distributed.
Who Are The Parties To A Revocable Living Trust?
There are three major parties to a revocable living trust:
The grantor: The grantor is the person who creates the trust. The grantor can also be referred to as the trustor or settlor.
The trustee: The trustee is the person who manages the trust. The trustee can be anyone you choose, including yourself. You'll need to name a successor trustee to take over if you become incapacitated or pass away.
The beneficiaries: The beneficiaries are the people who will receive assets from the trust. You can name anyone as a beneficiary, including charity organizations.
What Assets Can I Put Into My Revocable Living Trust?
You can put any assets you own into your revocable living trust. These include;
Real estate: You can transfer your home or other property ownership into the trust.
Personal property: This includes items like jewelry, furniture, and collectibles.
Financial accounts: You can transfer ownership of your bank, investment, and retirement accounts into the trust.
Business interests: If you own a business, you can transfer ownership into the trust.
Where Can I Get A Revocable Living Trust?
You can get a revocable living trust from an attorney or online. Be sure to read the terms carefully before signing and understand all of the provisions. It would be best if you also had your trust reviewed by an attorney to ensure that it meets your needs.
If you're thinking about setting up a trust, check out the free revocable living trust template here at Forms.legal. This form can help you get started on the process of creating your own trust form.