Tax season has a way of reminding people to take care of estate planning details. One tool that is popular is a revocable living trust. A living trust means that the terms of the trust are established while you are still living, and revocable gives you the flexibility to make changes in terms and beneficiaries at any time as you wish. Here are 5 facts that can help you decide if a revocable trust is right for you:
- Money and property in a trust are exempt from probate – The assets you designate are firmly in place for the intended receivers.
- Revocable estate trust details after death are private – A will becomes a public record, and therefore is open to the public.
- Revocable trusts are flexible – You are able to change beneficiaries or even dissolve the trust at any point without extensive legal exercise.
- A trust is not a will – You still need a will in place to cover any assets and requests not included in the revocable trust. A will is also the place to name guardians for children, managers for children’s property, and provide instructions for debts and taxes.
- Trusts require administration – You may or may not need to pay an attorney to set up proper powers of attorney. Also, the person managing the trusts must take responsibility for putting designated accounts and property in the name of the trust. Without proper designation, the intended property or account is ineligible for trust protection.
For more information, please talk with a Salmon Sims Thomas tax advisor.