Revocable Trusts: A Fundamental Component Of An Estate Plan
By: Moshe B. Genet - February 12, 2019
One of the fundamental components of an estate plan is a revocable trust. While both wills and revocable trusts direct distributions of assets upon the Grantor’s death, a revocable trust with properly titled assets will keep the grantor’s family out of probate court and avoiding unnecessary court costs and professional fees. Another additional benefit of a revocable trust is the significant protections it provides the grantor should they become disabled or incapacitated. While it may be uncomfortable to plan for a possible disability, having the proper provisions in your revocable trust can put you and your family at ease.
KEEPING YOU OUT OF PROBATE COURT
Assets owned individually will upon death require probate. Assets owned in a revocable trust avoid probate because the revocable trust has a separate legal identity. This allows the beneficiaries to escape the significant expenses of the probate process. Also, a revocable trust provides the estate with a level of privacy that cannot be accomplished by a will.
Modern medicine is keeping people alive for longer and increasing the risk of living with an incapacity or disability. It is recommended to include provisions in your revocable trust that provide flexibility for the benefit of a grantor who becomes disabled or incapacitated. In the event of an incapacity, the successor Trustee can step in and manage the assets or make payments on the Grantor’s behalf for all medical, social and financial needs.
It is important to reach out to a qualified professional to implement your overall estate plan. Interested in learning more about avoiding probate and planning for a possible incapacity? Contact the experienced attorneys of Morris Law Group.
** Disclaimer Required by IRS Circular 230** Unless otherwise expressly approved in advance by the undersigned, any discussion of federal tax matters herein is not intended and cannot be used 1) to avoid penalties under the Federal tax laws, or 2) to promote, market or recommend to another party any transaction or tax-related matter addressed.