You don’t need to have massive wealth to receive benefits from a revocable trust. Also known as a living trust, this estate planning tool can be used on its own or in conjunction with a will. Our attorneys at Walk-In Wills provide insight into revocable trusts to determine whether they’re the right option for you.
The terms of a revocable trust can be changed after creation. This provides more control to the creator, also known as the grantor. Assets can be added and removed from your revocable trust during your lifetime. If the grantor dies or become incapacitated and is no longer able to make financial decisions, the successor trustee takes control.
Irrevocable trusts cannot be changed after they take effect. Once the trust is funded with assets and property, the grantor loses ownership rights and can no longer make decisions regarding these assets. An upside to this is that assets will no longer be subject to taxes, as they’re no longer owned by the grantor.
Once you’ve created the trust document and listed your assets, you’ll also need to have your trust funded. This is the process of changing ownership of assets so they can be included within the trust. With some assets, listing them in the trust document is sufficient for inclusion. This is the case with jewelry and other personal effects.
With other items, you’ll need to take additional steps. Property deeds must be retitled showing ownership by the trust. Retirement accounts and life insurance policies will need to have their beneficiary designations updated to be included in the trust.
Items not included in the trust may be subject to probate but implementing a pour-over will prevents this from occurring. Property and other assets included in your will transfers to the trust upon your death. As a result, these assets won’t be included in the probate hearing, which saves your estate time and money.
Estate planning is often complex, even if you only have a few assets. While you can create an estate plan on your own, having an attorney’s assistance is highly recommended. Walk-In Wills combines dependable legal help with a fast and efficient office experience.
If you have estate planning questions, we have answers. Call us today (505) 903-7000 to schedule a free one-hour consultation. You can also contact us online for more information.
