Understanding the Benefits of a Revocable Living Trust
If you are considering your estate planning needs, there are more options available to you other than a Last Will and Testament (will). Visiting with an experienced estate planning and asset protection attorney can help ensure that your wealth is not only protected, but distributed according to your wishes after your death.
Revocable Living Trust
A revocable living trust (also known as a revocable trust) will divide assets upon your death, however, it differs from a will in many ways. This type of asset protection financial tool can be used throughout a person’s lifetime as well as following their death. Understanding how a revocable living trust differs from a will can help you determine if this type of financial tool is right for you and your family.
Differences Between a Last Will and Testament vs Revocable Living Trust
- Wills are public information as they go through the probate process; trusts are private.
- Will distribute entire estates to adult beneficiaries following a death; trusts allow the transfer of assets during a person’s lifetime.
- Wills are required to go through the probate process; trusts do not need to go through the probate process.
- Wills are unchangeable once executed; trusts may be changed at any time during a person’s life.
- Wills have no FDIC protection; trust assets receive FDIC protection up to $250,000 per each beneficiary up to a total amount of $1,250,000.
- Wills are easily challenged by disgruntled family members; trusts are difficult to challenge.
- Wills calculate assets as part of an estate; trust assets are not legally calculated as part of a minor child’s estate and not included in any estate tax calculations.
These are not the only differences between a will and trust and only highlight some major distinctions. If you have minor children for which you are considering leaving part of your assets after your death, there is a good chance that a revocable living trust could be a valuable part of your estate plan. Additionally, if you want to have your beneficiaries benefit from completely avoiding the probate process following your death, a revocable living trust may also be a viable option for your estate plan. Visiting with an experienced attorney can help you determine what options are best for your specific estate planning needs.
Reach Out to Us Today for Help
Estate planning needs are wide and varied, and often change throughout the course of a person’s life. If you are needing to change some of your estate planning documents, or create new ones based on your circumstances, contact the experienced Jupiter asset protection attorneys at the office of Julianne Frank, Esq. We can help examine your current financial situation with you and help develop the best plan for your estate planning needs to ensure that your loved ones receive the assets you have worked so hard for throughout your life. Call our legal team at 561-320-7971 for a free consultation today.