Estate planning can ensure the distribution of your assets according to your wishes when the time comes. To make sure this happens, there are various tools and legal documents available to you.
One of the most powerful tools you can use is a revocable trust. Here are five reasons why you should consider adding it to your estate plan.
What is a revocable trust?
A revocable trust is a legal tool that places your assets into a trust for your lifetime, then distributes them to your named beneficiaries. You can change or cancel any part of the trust while you are still alive.
Why is a revocable trust so important?
Here are five reasons why a revocable trust is such a powerful tool for estate planning.
- It ensures the timely distribution of your assets to your beneficiaries in the event of your death
- It avoids probable court, and its associated fees and hindrances
- It keeps the details of your estate private since the document is not entered into court records
- You can name a trustee to manage assets on your behalf if you become incapacitated
- Out-of-state assets can avoid probate in that state as well as your resident state
Can a revocable trust replace a will?
No, a revocable trust does not replace your will. Your will provides other features, such as guardians for your minor children, that a trust cannot address. A solid estate plan will include both documents.
Choosing the right tools for your estate plan will help you get the result you want and maintain your place of mind. Consider adding a revocable trust to your plan to ensure the outcome you desire.