On February 22, 2013

One of the most important things a person, couple, or family can keep in mind when planning for the administration of an estate is that a veritable plethora of options stand before them. Will, trusts, and other estate plans can take on a number of forms-so many in fact that a unique and best-fitting plan is out there for everyone’s situation.

One option that may at times go unconsidered by both Colorado residents and other Americans across the country is that of a revocable living trust. If established for the right reasons and in the right circumstances, such a trust can both save a family from future probate court hassles and allow the assets that are being passed on to future generations to remain a private, family-only matter.

Revocable trusts are established relatively early by those wanting to account for the future handling of their estates. Assets are placed in the trust, but can be changed or entirely withdrawn before a person’s time of death. Revocable trusts have no specific income tax or estate tax benefit

However, revocable trusts have the advantage of negating the need for future probate court disputes. Additionally, a will or estate plan that enters into probate court will become public record; revocable trusts remain private.

Revocable trusts can also quicken the distribution of an estate once a person has passed on. The trustee(s) do not need to secure estate tax waivers for property covered by the trust. This allows beneficiaries to bypass any number of potential holds that financial institutions can place on assets meant to be passed on in an estate.

Revocable trusts are but another example of the myriad options open to those who are either in the middle of the estate planning process or have yet to begin. For a clear and legally sound explanation of all the avenues available to the destination of passing on assets to surviving loved ones, contact an experienced estate administration attorney.

Source: NJ.com, “Biz Brain: The benefits of a living trust,” Karin Price Mueller, Feb. 18, 2013

Categories: Trusts

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