A revocable living trust is a legal document that dictates how your assets will be distributed after you pass away. There are also other commonly known forms of probate, including testamentary and endowment. Probate involves a series of steps that can take months or even years to complete. This is why it is usually better to have a living trust established before you pass away.
Since many people don’t want to deal with a complicated process right after they pass away, there are a number of individuals and companies offering revocable trusts and other types of probate alternatives. There are even some companies that specialize in organizing and managing deceased individuals’ estates. While not every company does this, the ones that do can provide some great help in organizing and preparing your estate. Trustee preparation companies can also be a good way for you to make sure that your family will receive all the assets you’ve left them, no matter what the situation may be.
If you choose to use an estate planner instead of hiring a probate attorney, you can find one that will provide you with the help you need with revocable living trusts and probate. Because these types of trusts don’t need to be finalized until you’ve passed away, there is no need to appoint a trustee. This means that you can save yourself a lot of time when it comes to organizing your assets and making sure that they are properly distributed to your beneficiaries. This can also help you focus on making sure that your debts and other financial obligations are properly taken care of, and that you can take advantage of any tax breaks you may be eligible to take.
If you’re not going through probate but instead want to name someone as your beneficiary before you pass away, there are other options available for you. A revocable living trust can be used to create another living trust that serves as a trustee for your other assets and debts. Once you’ve named your beneficiary, they will take over managing your debt and assets until you die or until you remarry. If you’ve already designated a probate trustee, he or she will continue to serve as the trustee for your revocable living trusts until the original trust is dissolved. This provides you with another way to organize your finances without having to appoint a trustee.
Once you’ve created a revocable living trust and named as your beneficiary, you’re going to want to find someone to manage your assets until you die or remarry. If you’ve already established a trust naming your primary caregiver, that person will serve as the primary trustee on your revocable living trusts. If not, then you’ll have to hire a probate lawyer or financial advisor to act as your replacement trustee. This will mean paying fees for their services, although these fees should be worth it in the end. The new replacement trustee will manage your trust assets until your death or remarriage. This means that your beneficiary won’t necessarily see their inheritance immediately, but instead over time as the replacement grows your estate.
It’s important to note, however, that some probate court systems are interpreting the definition of revocable trusts differently. In some states, beneficiaries of revocable trusts are excluded from receiving their inheritance until the death of the primary beneficiary, while in other states they are expected to receive their inheritance immediately. This can make estate planning more difficult. But as long as your intentions aren’t to use the trust to hide assets or delay tax deductions, revocable trusts avoid probate and allow you to direct where your money goes if you pass away unexpectedly.