Revocable Living Trust - The Facts
Aug 28, 2018
This article regarding revocable living trusts by Michigan lawyer Nicole Wipp and the Family & Aging Law Center PLLC is not, and should not be construed as, legal advice. It is for general informational purposes only. To better understand how this legal concept can be applied to you, consult with an attorney.
REVOCABLE LIVING TRUSTS...
The Facts...
A trust is a contract between the Grantor (the person who creates the trust), the Trustee (one who controls the trust) and the beneficiaries (those entitled to benefit from the trust).
You, as Grantor, determine how the trust will be operated by the Trustee and who benefits, how and when. You can create a trust that permits you to be Trustee and give you the right to receive full benefits from it. This type of trust is often used as a substitute to your Will.
Get Your Questions Answered - Make an Appointment By Calling (248)278-1511, or Attend One Of Our Workshops
A revocable living trust permits you to keep total control and access to all your assets during your life, and provides for the distribution of your assets to your beneficiaries at your death - and, when it is properly funded, will avoid probate. We often refer to a revocable living trust as "your rulebook," because a revocable living trust allows you to set the rules for your assets and money during your life, during disability, and after death...instead of giving that power to the state, or others.
A well-established advantage to Revocable Living Trusts is the avoidance of probate, which is required if you use a will to distribute your assets after death. In fact, for people wishing to avoid probate, the advantages of using a trust usually far outweigh other types of planning, such as beneficiary designations.
Other advantages of revocable living trusts, when property drafted, can include:
- Asset protection for your spouse after your death.
- Special needs planning for disabled beneficiaries.
- Asset management and protection for children who are not proficient with handling money.
- Protection of assets from a spouse’s subsequent marriage after your death.
- Disability planning in case you become disabled prior to death.
- Asset protection for your children if in bad marriages or to ensure your assets don’t go to the in-laws.
- Keeping your affairs private (as opposed to open for public review in probate).
- No court intervention required (handled entirely by Trustee you name in accordance with your detailed instructions).
- Plan for proper management of your business in your absence.
For more information, listen as attorney Nicole Wipp explains how Revocable Living Trusts work - click here.
Learn more about how to avoid nursing homes taking your house.
Very few revocable living trusts provide ALL of these benefits. Only a qualified estate planning attorney will know how to incorporate these protections into your plan.
It is also essential to know that, while a Revocable Living Trust has many advantages, it does not protect your assets from a nursing home, lawsuits, divorce, bankruptcy or other creditors - but there are ways to do that.
Contact us today (248) 278-1511.
We Can Help You Decide If A Revocable Living Trust Is Right For You.
Curious to learn more? Read everything you need to know about revocable living trusts - click here.