There are many aspects to estate planning, including wills, trusts, guardianships and many more. Although most people in Lee County have probably heard of living trusts not everyone is familiar with how they work. There are many other people who do not even want to broach the topic of estate planning simply because they’re not comfortable discussing their own death.
However, estate planning is essential for your loved ones after you die and in the case of living trusts, they can be very important while you’re still alive. So what is a revocable living trust? According to the American Bar Association, a living trust is essentially a trust that is created and used during your lifetime.
A living trust can be set up for many reasons. Some of the most common reasons people use living trusts are to help manage their assets during life and to protect themselves and their assets in case they become incapacitated due to serious injury or illness.
One of the greatest advantages of a revocable living trust is that it can be changed or revoked, just as its name implies. Most living trusts allow you to change them whenever you see fit. In most cases you can completely revoke them should you wish to do so. Although these kinds of trusts don’t protect you from estate tax they can help you avoid the probate process.
A living trust also includes a trustee who is usually responsible for the management of your property according to your directions. If your trust is still in place when you die then the trustee usually either distributes the property reserved in the trust to your beneficiaries as you direct, or he or she continues to manage the trust in behalf of your beneficiaries.