Revocable Living Trusts

What Is A Living Trust?

A trust is a legal arrangement in which one or more individuals or entities manage assets for the benefit of designated beneficiaries. A living trust is created during a person’s lifetime and can be used to manage property, provide for incapacity, and direct how assets are distributed after death.

Living trusts can offer important estate-planning benefits depending on your circumstances. Read below to learn more about how a living trust may fit into your overall estate plan.

Revocable Trust Document with Pen — Palm Bay, FL — Roy A Alterman PA

What Are The Benefits of A Living Trust?

A Revocable Living Trust can be an effective estate-planning tool for individuals who want greater control, privacy, and flexibility in the management and distribution of their assets. Potential benefits include:

  • Avoiding Probate – Assets properly titled in the trust can generally pass to beneficiaries without going through probate.
  • Greater Privacy – Unlike a Will admitted to probate, a trust is generally administered outside of the public probate process.
  • Planning for Incapacity – A successor trustee can manage trust assets if you become unable to manage them yourself.
  • Continuity of Asset Management – Trust assets can continue to be managed without interruption during incapacity and after death.
  • Control Over Distributions – A trust can specify when and how beneficiaries receive assets, including distributions over time or under specific conditions.
  • Protection for Minor or Vulnerable Beneficiaries – Assets can remain in trust for children, individuals with special needs, or beneficiaries who may need assistance managing an inheritance.
  • Planning for Out-of-State Property – A properly funded trust may help avoid the need for a separate probate proceeding in another state for real property owned there.
  • Flexibility – A revocable trust can generally be amended or revoked during your lifetime as your circumstances or wishes change.
  • Avoids probate at death, including multiple probates if you own property in other states.
  • Prevents court control of assets at incapacity.
  • Brings all your assets together under one plan.
  • Provides maximum privacy.
  • Quicker distribution of assets to beneficiaries.
  • Assets can remain in trust until you want beneficiaries to inherit.
  • Can reduce or eliminate estate taxes.
  • Inexpensive, easy to set up and maintain.
  • Can be changed or cancelled at any time.
  • Difficult to contest.
  • Prevents court control of minors' inheritances.
  • Can protect dependents with special needs.
  • Prevents unintentional disinheriting and other problems of joint ownership.
  • Professional management with corporate Trustee.
  • Peace of mind.

A Living Trust is not necessary for every estate. At our office, we help clients determine whether a trust is appropriate based on their assets, family circumstances, and long-term planning goals.