Setting up an estate plan isn’t something most people look forward to doing, but it’s a necessary step in ensuring your assets are distributed according to your wishes. The revocable trust is a popular tool that offers flexibility and control. It’s an arrangement you should consider, as it provides several benefits that might make your estate planning process smoother and more efficient.
Learning a bit about the benefits of this type of trust can help you decide about your estate plan.
One of the most appealing aspects of a revocable trust is its flexibility. Since it’s revocable, you can change the terms, add or remove assets and dissolve the trust. This is particularly beneficial during unexpected life events, such as divorces or sudden financial changes, allowing you to adapt your estate plan as needed.
One of the main goals of estate planning is to avoid the lengthy and often costly probate process. Assets held in a revocable trust automatically bypass probate, facilitating a quicker distribution to your beneficiaries. This saves time and can prevent your estate from incurring unnecessary legal fees and other probate costs.
Another often overlooked advantage of a revocable trust is the privacy it offers. Unlike a will, which becomes a public record once submitted to probate, a revocable trust remains private. This means the details of your assets and whom you leave them to won’t become public knowledge.
Within the revocable trust classification, there are several different types of trusts. Understanding these specific trusts can help you determine how to set up your estate plan. It’s best to do this now so you can have peace of mind that your affairs are taken care of if you pass away.