A revocable living trust is an estate planning device that is overlooked by some people who are convinced that they should definitely use a last will as an asset transfer vehicle. Many people make this assumption because they think that trusts are only used by multimillionaires.
This is definitely not the case when it comes to a revocable living trust, and you do not lose control of assets that you convey into a revocable living trust. While you are alive and fully capable of making sound decisions, you act as the trustee, and you can also act as the beneficiary. You are the absolute controller of the trust, and since the trust is revocable, you can dissolve the trust entirely if this is your choice.
You act as the trustee and the beneficiary initially, but when you create the trust declaration, you name successors to take over after you pass away. In this declaration or agreement, you leave behind instructions that the successor trustee will follow regarding asset distributions.
If you are concerned about beneficiaries spending their inheritances too quickly, you can allow for measured distributions on a monthly basis over an extended period of time to preserve resources. This is one thought, but you can leave behind any instructions that you want to when you create the trust declaration.
In addition to the ability to control the nature of the distributions, you can also account for the possibility of incapacity. Many elders do become unable to handle their own financial affairs at some point in time, with Alzheimer’s disease being a leading cause of incapacity.
You could allow the successor trustee to administer the trust if you were to become incapacitated at some point in time.
Another nice thing about a revocable living trust is the fact that the trustee can follow your instructions after you are gone and distribute assets outside of the legal process of probate. When a will is used, it must be admitted to probate, and this process is time-consuming and potentially expensive.
Free Living Trust Report
We have prepared a comprehensive report on living trusts if you would like to obtain more detailed information. There is no charge for the report, so this is a risk-free educational opportunity.
To get your copy of the report, click this link: Free Report on Revocable Living Trusts.
Attend a Free Estate Planning Seminar
We are committed to educating our neighbors in the greater Grand Forks area. To this end, we regularly schedule informative estate planning and elder law seminars, and we have two seminars coming up at the beginning of May.
The seminars are free to attend, but we do ask that you register in advance so that we can reserve your space. Visit our seminar schedule page to see the exact dates, times, and locations.
To learn more, please download our free North Dakota trust instead of a will here.
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