Why Should You Consider A Revocable Trust?
We’ve done a few posts on revocable trusts already. In the first, we explained more about what a revocable trust was and how it worked. In the second, we talked about some of the most important benefits of a revocable trust. Now that you have a bit more background, let’s spend some time exploring why you should consider a revocable trust through a series of questions.
Do you have assets in more than one state?
One of the situations where revocable trusts are particularly useful is when a person owns assets in more than one state. The benefit to a revocable trust is that it avoids going through probate separately in each state where an asset is located. A good example would be a person with a primary residence in one state and a second home elsewhere. Rather than force your family members to go through the lengthy probate process twice, a revocable trust skips those steps entirely, passing your assets directly to your heirs.
Do you have a complex collection of assets?
Though revocable trusts are important even for those with simple asset structures, those with complicated collections of assets and property benefit even more. Rather than have your heirs go through the complicated process of dividing up investments such as artwork, stocks, bonds, real estate, bank accounts, etc., a revocable trust can manage everything all at the same time.
Do you want a plan to protect assets now and when you’re gone?
Wills are great ways to lay out plans for once you’re no longer around, but if you’re eager to make plans for today, consider a revocable trust. A revocable trust is created while you’re still alive and can be used in the event of a health crisis or incapacity. Rather than have someone appointed to manage your affairs, the revocable trust can continue operating smoothly. Because the trust is revocable, it can also be amended multiple times as life and circumstances change, giving the grantor tremendous flexibility.
Do you worry about protecting your heirs?
Revocable trusts are great ways to provide extra protection for your beneficiaries. Though you can leave assets to heirs through a will, you cannot use a will to protect these assets from the creditors of your beneficiaries. If something happens after you’ve passed away and your assets have been distributed and a creditor files a claim against a beneficiary, he or she may lose the asset you set aside for them. By creating a revocable trust, the asset is protected from these claims by creditors, ensuring that your beneficiaries, and not future creditors, are the ones who truly receive the benefits.
Do you want privacy?
If so, then a revocable trust is absolutely something you should consider. Though a will is an important estate-planning document, it becomes public record once it is filed with the probate court. That means anyone can gain access to the will and some sensitive personal information. A revocable trust, on the other hand, is private and the terms do not need to be disclosed publicly, shielding you and your family from unwanted scrutiny.
Minnesota Revocable Trust Attorneys
An experienced Minnesota estate planning lawyer can help walk you through the probate process, answering questions along the way. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 424-0398.
Source: “Revocable Trusts,” published at AmericanBar.org.
