Avoiding probate court proceedings after your death can save your family time, money, and headaches. Revocable living trusts are the only probate-avoidance technique that allows you to avoid probate for virtually any property you own: real estate, jewelry, heirlooms, bank accounts, and much more.
Revocable living trusts function like wills--you use them to leave your property, and if you change your mind at any time while you're alive, you can change the terms of the trust or revoke it altogether. The advantage comes at your death. Property in the trust is controlled by the person you named to take over as successor trustee, and that person has the power to distribute the property to inheritors without any probate court involvement. That saves everyone a lot of work and gets property to the people you chose to inherit it much more quickly.
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An introduction to living trusts—a popular way to avoid probate.
You've heard that you should avoid probate—but why? Here are the basics.
How Living Trusts Avoid Probate
It's about as easy to prepare a living trust as it is to write a will. But with a living trust, you can avoid probate.
Why You May Not Need a Living Trust
Some people need a living trust immediately, others will never need one, and most of us fall somewhere in the middle. Factors to consider are how old you are, how wealthy you are, and whether you are married.
Revocable living trusts are a popular estate planning tool that you can use to determine who will get your property when you die.
Other Advantages of a Living Trust
The main reason for setting up a revocable living trust is to save your family time and money by avoiding probate after your death. But there are other benefits as well.
One of the advantages of using a living trust, instead of a will, to leave the bulk of your property is that it gives your family more privacy.
Do Living Trusts Protect Assets from Creditors?
Living trusts are useful for estate planning, but you'll need to take other steps to shield assets.
Can I Get a Reverse Mortgage If My House Is in a Living Trust?
A reverse mortgage offers additional income or cash to cover unanticipated expenses. Can you use one if your home is in your living trust? Can you add it to your trust is part of your estate plan?
Making a Living Trust: Can You Do It Yourself?
Many people don't need a lawyer to create a living trust.
Make a Living Trust: A Quick Checklist
Living trusts aren't as complicated as they sound. Here are the few steps you need to make one.
What Property to Put in a Living Trust
For the greatest benefit, hold your most valuable property items in your living trust.
When you create a simple living trust to avoid probate, you must decide who to name as your “successor trustee.” It’s an important decision; this is the person who will take charge of the trust assets after your death, or sooner if you someday become incapacitated and unable to manage things yourself.
Funding Your Living Trust Once you’ve made a living trust, there’s one mo
This sample living trust uses fictional names and situations.
Amending or Revoking a Living Trust Document
You can change the terms of your living trust, or revoke it, at any time.