Why Not Rely on a Last Will and Testament?
Who Is Involved in a Revocable Trust?
When you have a revocable trust, several people are involved. The first person is the grantor, also known as the creator of the trust.
The trustee is responsible for distributing and managing assets according to the documents that are part of the trust. This person must be deemed mentally competent and able to manage the benefits. The trustee could be yourself or a spouse, but some people have co-trustees and successors who will also handle it. These people could include a child, a lawyer, a bank, or other trusted individual.
When Should You Consider a Trust?
You might consider starting a revocable trust early on, before you face any potential injury or serious illness. Early planning is made easy with the help of legal services.
Why Do You Still Need a Will?
What Are the Benefits of a Revocable Trust?
Having a revocable trust comes with a number of benefits. While not a comprehensive list of benefits, these reasons to consider a trust will get you started.
As you already know, having a trust allows your assets to pass over probate court in the event that something happens to you. Additionally, your beneficiaries have immediate access to cash and other assets when you use a trust.
A revocable trust allows you to preserve your privacy. Probate can be a highly public process, and keeping a trust allows for more discretion.
What Are the Disadvantages of a Revocable Trust?
Of course, not everything about a trust is entirely positive. The process of establishing a trust can be expensive, and you may face higher administrative expenses if you go this route.