Revocable Trust Lawyer
Many people in Georgia have heard that they “should” have a revocable trust. However, they don't always understand why or how this type of trust works.
A revocable trust provides the right cornerstone for an estate plan in numerous situations, but it may not be the best choice for your family. The team at Peach State Wills & Trusts can review your goals and circumstances and help you determine your best options.
People often think of a trust as a type of account, but it is something even bigger. It is a legal entity that holds property, including accounts. Some people think of it as a virtual container or bucket for owning property, or maybe even a suitacase in which to hold and organize your assets.
A trust is created by someone referred to as the grantor and managed by a trustee. That trustee has an obligation to handle the property and distribute it to the beneficiary. Often, trusts are used to hold property for individuals who aren't ready to take on the responsibility for themselves. But that is generally not the case with revocable trusts.
How a Revocable “Living” Trust Works
Unlike the traditional trust situation, with a revocable trust, the person who establishes the trust also serves as the trustee to manage the property and they also reap the benefits as the beneficiary. Everything belonging to the trust is used and controlled by them as if the trust did not even exist. This type of trust is often referred to as a living trust because it is created and used during the grantor's lifetime. They can remove property from the trust or cancel the trust at any time as long as they remain legally competent.
So why go to the trouble of creating a living trust? Two main reasons. First, property that has been transferred into the trust does not become part of the grantor's probate estate when they pass away. Instead, it passes directly to alternate beneficiaries. That means all the property in the trust does not need to go through probate. This can save considerable time, money, and headaches for loved ones.
Another benefit of a living trust is that it can be set up to enable the alternate trustee to step in and manage financial matters if the grantor/trustee becomes incapacitated.
Additional Advantages of a Revocable Trust
A revocable living trust is particularly advantageous for people in certain situations. Those who own real estate in more than one state would need to have their estate probated in every state where they own real property. This includes timeshares. If this property is transferred into a living trust, then probate can be avoided not just once but twice (or more). And that can result in significant time savings, as well as much lower cost.
Another situation where a revocable living trust is helpful is in blended family situations. You can establish trust provisions to specify which property should go to children from a prior relationship and which property would stay with a second spouse.
Finally, the process of distributing property through a revocable trust is completely private. If your property is distributed through a will, by contrast, the will becomes a matter of public record when it is admitted to probate. Families who appreciate privacy find the protection of the trust very reassuring.
Talk to Peach State Wills & Trusts To See Whether a Revocable Trust is Right for You
Every situation is unique, and that means the plan that is best for someone else may not be the right choice for your situation. At Peach State Wills & Trusts, we develop custom plans designed to meet your goals without unnecessary expense or complications. We invite you to talk to us and learn more about your options so that we can ensure that your family is prepared for the future.