Peace Of Mind For Your Family And Your Future

Should you establish a revocable living trust?

On Behalf of | Mar 21, 2022 | Estate planning

Do you wonder how your loved ones will manage the portion of the inheritance you leave for them? One way to get your answer is to set up a revocable living trust (RLT). If you live in Delaware, here are some things you should know about an RLT for estate planning purposes.

Establishing a living trust

You can establish a trust with a written agreement or a formal declaration that designates a trustee to administer and manage your property. As long as you are competent, you can create an RLT as part of your estate planning. As the trust creator or grantor, you can assign any adult of sound mind to be your trustee. You can also assign a trust company or bank as the trustee of your estate. Or, you can choose to be the trustee until you pass away.

Once your RLT is established, you can place your assets, such as your bank accounts, investments, and property, into your trust. Keep in mind that from that point on, you are not the owner of the assets — the assets now belong to a trust. Since the trust “owns” your assets, they won’t have to go through probate when you pass away.

The benefits of a living trust

One of the main reasons that you should set up an RLT during estate planning is the ability to avoid probate. This lowers the chances of your family members getting into disputes about who is entitled to your assets or property. The trust also allows you to handle your financial matters privately and to change trustees as you see fit.

Once you have an RLT in place, you can save money on probate proceedings. Your assets will also be awarded to your beneficiaries quicker. The assets designated in your trust usually take precedence over the assets you’ve listed in your will as well.