The use of a revocable trust in an estate plan can be effective in avoiding probate. The choice of using a living trust should be made after consideration of a number of factors.
A living trust also sometimes called a revocable trust can help you manage your assets during lifetime and after you pass away. Most living trusts are written to permit you to revoke or amend them whenever you wish to do so. These trusts do not help you avoid estate tax because your power to revoke or amend them causes them to continue to be includable in your estate. These trusts however can help to avoid the probate process. Careful thought should be considered if utilizing a living trust, as one may not be necessary depending on the complexity of the estate.
Property is placed in this type of trust during your lifetime. Upon your death, the Trustee is generally directed to either distribute the trust property to your beneficiaries, or to continue to hold it and manage it for the benefit of your beneficiaries. Like a will, a living trust can provide for the distribution of property upon your death. Unlike a will, it can also provide you with a vehicle for managing your property during your lifetime. This is an excellent option should you become incapacitated at any point.
For more information regarding the use of a living trust and whether it is appropriate for your estate plan, contact the attorneys at Fitzgerald & Sadove PLLC for a free consultation.