Share:

When it comes to financial planning for your estate, you have many options for controlling the distribution of assets. A revocable living trust is one of the most popular options due to its many advantages. Below are a few reasons that people choose this type of trust to help you decide if it’s right for your estate.

Why You Should Use a Revocable Living Trust

1. Avoid Probate

Probate is the court-supervised legal process of the estate’s distribution after your death. This happens when you have a will or did not plan your estate. Probate is an expensive and time-consuming process, which involves paying off any taxes and debts, distributing the assets after taxing, and settling any disputes.

With a revocable living trust, the trust owns the assets, rather than you. Since the trust survives after your death, there is no need to go through probate. A trustee will distribute your assets efficiently and cost-effectively.

2. Maintain Privacy

A will becomes public record when probate starts. This means anyone can read it to learn about your possessions and who you gave them to. However, a trust document remains private. Only your beneficiaries, the trustee, and anyone else you name can read the trust.

financial planningThis is beneficial if you don’t want the public to know the value of your estate and can protect those you leave behind. This allows beneficiaries to keep private which assets they now own. If you are a business owner, it will protect the privacy of your business’s value, keeping this information away from competitors.

3. Make Amendments Freely

An irrevocable trust requires transferring ownership to the trust and trustee forever; you cannot make changes later. A revocable trust allows you to amend the terms while you are living. Because you may change your mind about financial planning considerations throughout your life, the freedom to do so is essential. It will only become unchangeable when you pass away.

As circumstances change, you can add or remove beneficiaries or liquidate assets if you need money. You may also add stipulations for how to distribute the assets, such as giving a minor a monthly allowance, rather than a lump sum. 

 

If you need financial planning help in Russell, KY, contact First & Peoples Bank and Trust Company. Since 1932, they have been offering the finest banking services to the people of Greenup County at their locations in Flatwoods, Greenup, and South Shore. They utilize the latest technology to make managing your money easy with mobile and online banking. Learn more about their services by visiting the website. Call (606) 836-0211 to discuss a trust with a representative.

tracking