Wills are legally bound directives that state who will receive your property upon your death…
Why Do I Need a Living Trust?
** This article has been revised from its original version which was published on August 7, 2019.
No one likes to think about their end of life, but you can’t avoid the inevitable. Estate planning helps you protect your family’s financial future and put your mind at ease. Having a solid plan in place can ensure your family is well taken care of if you become incapacitated and after you are gone. As such, a living trust can be an invaluable planning tool.
A living trust allows you to decide how your assets, property, vehicles, stocks and bonds, bank accounts, and family heirlooms, including antiques, jewelry, and collections, are handled.
Revocable Versus Irrevocable Living Trusts
There are two types of living trusts – revocable and irrevocable.
A revocable living trust is just that; it can be revoked at any time. This trust allows you more flexibility, allowing you to move assets in and out of the trust whenever you see fit. You have the right to revoke or amend the trust at any time. You receive the trust’s income and/or principal and can also control the assets as the trustee. You must, however, report any income on your tax return.
An irrevocable living trust is permanent, including the assets placed in the trust. Once the terms of the trust are created, changes can’t be made.
When to Use a Revocable or Irrevocable Living Trust
There are three common reasons why someone would want to set up a revocable living trust:
- They want to avoid the delays and expense of probate
- They own property in more than one state
- They are concerned that a family member will challenge (contest) their estate plan
On the flip side, setting up an irrevocable living trust can make sense if:
- They want to protect assets for their family if they suffer a catastrophic illness and need long-term care
- They want to save on estate taxes
Do I Need A Living Trust?
There is no specific factor for deciding if you need a living trust. It depends on your circumstances and estate planning goals. But, if you’re looking for additional protection for your assets and want to ensure your family is provided for appropriately after you’re gone, setting up a living trust can give you great financial peace of mind.
Interested in Learning More About Trusts?
We regularly hold free educational seminars about trusts and other estate planning documents, so you learn what they can accomplish and whether they fit your situation.
When implementing an estate plan, it’s important to consult with and retain experienced estate planning and trust attorneys. The knowledgeable and compassionate team at Russo Law Group, P.C., provides professional services and advice regarding living trusts, asset protection, and estate taxes. Take advantage of our comprehensive website as well as our free seminars and webinars to learn more about how Russo Law Group, P.C. provides peace of mind. Please contact our law firm to speak with one of our experienced trust attorneys today at 1 (800) 680-1717.
This Post Has 2 Comments
It’s great to know that there is such a thing as a revocable trust. For every transaction I make, I always like to make sure that nothing is permanent and there is always a way to back out or change the terms. I do understand that I would have to get a trust soon enough since I do have some prized possessions and perhaps properties that I would soon found passed down to me that I would also want to go to the next generation someday. I do wonder if mid-thirties is an old enough age to start looking into finding a trust.
Thank you for your interest in our law firm and for your comment on our website. It is never too early to start thinking about your estate plan, and people at any age should create a plan to fit their needs.
To find out what type of trust makes sense for your situation, please contact Ashley at 516-393-3164 to arrange a meeting with one of our Estate Planning attorneys. Thanks again.