What protection is available by a revocable living trust?
Incorporating irrevocable living trust into your estate plan come to the number of benefits but chief among them are that it helps to avoid the probate process which can be lengthy and costly to an estate. The second is that it helps you in the event of an incapacity so if you find yourself incapacitated after an accident or perhaps after developing dementia, the document would dictate who’s to take over your trust and will give them access to your money in order to pay for your care.
We, at Walser Law, provide a revocable living trust for our clients. A revocable living trust is one that is very helpful in avoiding probate. Let’s start by defining what probate means. Probate is the process by which the law court sees to the distribution of property that belongs to a deceased person at the time of death after all the debts and taxes of the deceased have been paid in full.
During your lifetime, you are allowed to transfer ownership of your assets to a revocable trust. This is done so that these assets are owned by the revocable trust after your death and is, therefore, subject to probate.
The properties in a revocable trust can be revoked, meaning it can be taken back or the terms of the trust can be changed, as long as you are alive and deemed competent to make such decisions. Your creditors can take those assets during your lifetime if you owe them money because you retain control of the trust. However, the trust makes it more difficult for creditors to access these assets.
A revocable trust can become irrevocable after the death of the grantor. This implies that the assets that have been entrusted into the trust cannot be taken back, and they must be given out to the beneficiaries of the trust as directed by the trust document.