We need to make sure that our loved ones will be taken care of after we are gone. These thoughts can lay heavy on your mind and you may be considering writing your will or creating a living trust to prepare for their futures. You have options and you can choose one that fits your needs.
A trust is an excellent choice when you need more flexibility than a will can provide. But many of us may still need access to assets that would normally be locked up tight in another type of trust. So, what type of trust will give you the most power over your assets?
Revocable Living Trust
Revocable living trusts are an excellent choice for people who still want and need control over their assets. The grantor can alter or end this type of trust at will and it offers much more freedom than an irrevocable trust. This can be a good thing or a bad thing.
An irrevocable trust gives you full control over the creation of the plan but it cannot be altered by anyone for any reason after it is complete. You don't have access to any money or property tied up into this type of trust. At the same time, no one can contest your wishes or alter your decisions.
Your money and your family are secure. You will also pay little or no taxes on what you place into the trust and keep any creditors from getting their hands on your funds. You can trust that your wishes will be upheld no matter what anyone says or does.
On the other hand, a revocable trust is where any assets involved in the trust are still under your control as long as you live. It is built to change and grow with you and your family. There are many other particular benefits over irrevocable trusts if you decide that it is best for you.
Benefits Of Revocable Trusts
Irrevocable trusts are excellent and necessary for many people concerned about their families' future, but their structure does not fit the needs of everyone. Revocable trusts have been created for people who desire more freedom with their time and their money.
You will have total access to all of your assets while you are living so that you may make changes that reflect your family. You are the trustee and you make the decisions. Children are born, couples can separate, and people pass away. Your plan can be updated as needed for your convenience.
Unlike an irrevocable trust, the revocable trust is taxable by both the federal and the state. A revocable trust still gives you the same protections as other trusts and you can be assured that your wishes will be upheld in the event of your death.
Choosing a revocable trust allows you special conditions from the IRS to help your family avoid the burden of probate after your death, especially if your estate is worth $150,000 or less. If your portfolio is worth more than $150,000, then an experienced money manager can help during the probate process.
You will keep the right to buy and sell said property and use any funds in case of an emergency. This a great option for somewhat younger people, couples, or families who want to prepare for the inevitable but still Iive the lives they want to lead. The first step is to contact a local proven estate attorney to simplify the process.
How Do I Get Started?
Discuss this information with your trusted estate manager. They will listen to your wishes and make sure that you have all the essential information to make the best decision for you and your loved ones.