Creating a revocable trust is one option you have to make sure your estate is passed to your beneficiaries upon your death. A revocable trust is created by signing a document and naming a person, corporation or both entities to be the administrator of the trust. The person who creates the trust is known as the grantor. The trust is to be administered in the best interest of the grantor, even while he or she is still alive. Here are some benefits of a revocable trust.
If you create a revocable trust and fund it, you might be able to name trustees that are not based in the state in which you live. This can help when the time comes to administer the trust upon your death. If no trust is in place, many states limit the flexibility you have in this option.
When you create a revocable trust, you are protecting yourself and your property should you become disabled. A revocable trust will allow you to use your property for your benefit should you become disabled and can no longer make decisions for yourself.
When a grantor passes away with a revocable trust, the assets of the trust can be used as cash to help pay for any and all estate taxes. This can be done without having to wait for probate to be completed or for preliminary letters to be written and filed.
Now that you know the benefits of creating a revocable trust, you can make an informed decision as to whether this option is best for you. Be sure to run all of your questions and concerns by a family law attorney.