Revocable Living Trusts
Benefits of a Revocable Living Trust
Every family has its own unique set of family dynamics and sometimes we worry about how one or more of our children or beneficiaries will manage their portion of their inheritance when we pass away.
While we love all of our children, it's not uncommon to have one person in the family who is not good at managing their money, and we know that leaving that person a large sum of money can lead to a disaster. However, there is one solution that allows you to exert control over your money and it is the revocable living trust.
A revocable living trust can be used in addition to a will or it can be used to substitute a will by providing for the distribution of your assets upon your death. An irrevocable living trust is an arrangement where you transfer ownership of your property into the trust over the course of your lifetime. You are considered the grantor (creator of the trust), the trustee is the person that manages the trust according to the trust documents, and the beneficiaries are those who receive benefits from the trust.
Trusts can serve different purposes and can perform a variety of functions. Unlike a will which takes effect after you die, you can start enjoying the benefits of a living trust while you are still alive. Since the trust is revocable by nature, you can make changes to the trust as family relationships or your personal circumstances change.
A revocable living trust is established by appointing a trustee to manage and administer the property of the grantor, the trust maker. As long as you are competent, you can establish a revocable living trust. Your trust will act as a rulebook that directs how your assets are to be handled when you die. As the grantor of the trust, you can manage the trust during your lifetime and name a successor trustee to take over when you pass, or you can choose any competent adult, bank or trust company to fill this role.
- Some of the advantages of a revocable living trust include:
- Trust assets avoid probate
- It's revocable, thereby allowing you to make changes
- A trust can segregate assets from community property assets
- It can assign a durable power of attorney or guardianship
- It can reduce estate taxes for large estates
Contact a Las Vegas Estate Planning Attorney
A revocable living trust is often a valuable component to an estate plan. Since no two estates are the same, it's important to discuss your personal situation with a Las Vegas estate planning lawyer from the Roland Law Firm.
With over 30 years of combined experience, we can help you establish a plan that will outline your unique financial objectives and personal values. Give us a call today at (702) 452-1500 to schedule a free consultation.