When passing on your estate to your heirs, a will or other estate planning tools can be used. A revocable living trust is one of best choices.
A story on aarp.org says the revocable living trust is becoming very popular, particularly among baby boomers.
This kind of a trust is a way to avoid probate — the legal process to validate a will — and offers other before-death and after-death advantages, according to the story.
If such a trust is right for you depends on your circumstances. An estate planning attorney is the one to help you decide.
A revocable living trust is a written agreement designating a person or persons to be responsible for managing your property. It is “living” because you set it up while you are alive. It is “revocable” because you can change it.
Among the advantages:
- besides allowing you to avoid the time-consuming probate process, a trust protects your privacy.
- it can also provide peace of mind in that you know your assets and your heirs are protected in the event that you become unable to handle your own affairs.
- you can draw it up so that your assets pass along at the time of your death or over time.
- it may be able to save you money on taxes.
- it does not have to be funded when it is created.
These trusts are not for everybody, but if you want one, it is important that a lawyer with expertise in the area create the trust for you. Costs vary. While it will cost more than preparing a will, there will be savings by avoiding probate.
