Residents of Delaware who wish to protect their assets and family members should consider estate planning. One option is a revocable living trust.
What is a revocable living trust?
A revocable living trust is a trust that can hold a person’s assets and property while they are still alive. The individual can oversee their own trust as the trustee and make decisions based on the assets they want held within it.
How does the trust work?
As the revocable living trust is set up as a way to preserve certain assets or property, it’s only useful if the owner funds the trust with things. “Revocable” means the trust can be changed over time as needed. This is in contrast to an irrevocable trust, which cannot be changed.
As the trust is revocable, the person who created it can add or remove property and assets into it whenever they wish. They can also modify the beneficiaries who should receive the assets and property at some point in the future. This type of trust is one of the most desirable due to the trustee’s ability to control it.
A revocable living trust can hold assets and property the owner wishes to avoid probate. However, the items held within the trust are not exempt from estate taxes.
What are the benefits of a revocable living trust?
Revocable living trusts carry certain benefits that make them attractive to many people. Avoiding probate is one of the biggest advantages. This type of trust is also good for retaining privacy after the individual’s death. The assets held within are kept private.
Perhaps the biggest benefit of a revocable living trust is that they are highly flexible as the assets and property added into them can be removed at any point as the owner sees fit. The trust is continuously managed throughout the rest of the person’s life as well.
If you’re considering a trust, a revocable living trust might be right for you.