If you are ever worried about how your beneficiaries will spend their inheritance once you are gone, you should consider setting up a revocable trust. It’s a solution to help you exert control over your assets, even after you are no longer around. A revocable living trust is established by an agreement or declaration that appoints a trustee to administer your property. The trustee can be any competent adult of your choice, but most people choose to have banks or trust companies oversee their assets.
Once a trust is set up, you can begin placing your assets into it, including investments, real estate or bank accounts. Notably, you no longer own these assets as they are now considered to be under the trust. It means that they won’t have to go through probate after your demise. Instead, these assets will be dealt with as per the terms of the trust.
You still retain control and can modify the trust
A revocable trust allows you to retain control over your assets even though they no longer belong to you. In addition, you can modify the terms of the trust. The income from these assets goes to you and is taxable. However, the assets do not transfer to the beneficiaries until after your demise.
The advantages of a revocable trust
Below are some reasons why you should consider setting up a revocable trust:
- Doing so helps you avoid probate
- It is flexible
- It preserves your family’s privacy
- It provides for continuous management of your assets
- It aids with the segregation of your assets, especially for married couples
Proper estate planning will give you peace of mind and ensure that your family is in good hands after you are gone. A simple will does not always do the trick. Learning more about estate succession plans will secure your beneficiaries’ futures and protect your family wealth.