A Revocable Living Trust is a legal arrangement created by a Trust Agreement signed by the trust maker and trustee. It lists the property assigned to the Trust, the trustee, and the name of the beneficiaries of the property held by the Trust after the trustee dies. The trustee exercises control over the property and so it often is the same as the trust maker until their incapacity or death. We help our clients with several aspects of estate planning, including creating and funding your Revocable Living Trust.
We recommend estate planning for anyone who owns real estate, has minor children and they want to ensure that the children have trustworthy guardians after their death, and for clients with complex estates who want to avoid probate or lingering disputes among potential heirs. Many parents may assume they know who will take care of their minor children if both die. With proper estate planning, you can address just about any issue you might face at incapacity or death.
The general rule is that larger estates and those with young children are better off with a Revocable Living Trust than with just a Will. The trustee of the Trust can immediately take charge, distributing assets as needed, and that even can happen before the trust maker’s death if they are ill or incapacitated depending on how the Trust is set up.
All assets funded to a Trust avoid probate. Probate can take months or even years if the Will is disputed, delaying the distribution of property, which is a major problem when children are involved. The trustee of a Revocable Living Trust and the named guardian can quickly use Trust assets to provide for the children as instructed.
If a person owns real estate in more than one state, the property will have to go through probate in each state separately when it is in a Will. Distributing property to beneficiaries through a Trust will avoid probate and save money. Unlike a Will, Revocable Living Trusts do not generally become public after the trust maker’s death.
We can help you settle a trust. They are generally more complex than writing a Will. In order to be funded, all of the property named in the document needs to be retitled and transferred into the Trust. That can include transferring the beneficiary of a life insurance policy and placing the title of your home into the trust. It can be a more complex process than simply creating a Will, which is one reason why we recommend hiring an experienced lawyer when creating a Trust so that we can help you work out the details.
Some people confuse a Revocable Living Trust with a Will. Both allow a person to name their heirs and beneficiaries, transfer property to their children upon their death, and can be revised as circumstances or wishes change. However, Revocable Living Trusts will stay private even after a trust maker’s death, whereas a Will becomes a matter of public record.
If you are interested in having a Revocable Living Trust created for your estate, give us a call at 253.858.5434 to see how we can help. We represent clients throughout Washington and Idaho and are available to meet in person, by phone, or via video conference.