A living trust is a powerful tool for transferring property from one generation to the next. Here are three reasons you should use a revocable living trust:
Reason Number 1: You Can Protect Property for Specific Beneficiaries
This is one of the most important reasons for using a living trust. There are times an intended beneficiary may not be able to handle a lump-sum inheritance. Usually, this is a minor child but inability to handle money or other assets can apply to adult children as well. A trust allows you to pass on your assets to your loved ones while also having some control over how they receive those assets. This can protect them from themselves and from their creditors.
Reason Number 2: Minimizing or Eliminating Estate Taxes
For those with estates of sufficient value, a living trust can help maximize certain credits and deductions that are allowed under estate tax laws. Your Arizona estate planning attorney can help you learn more about this.
Reason Number 3: Avoiding Probate
Property that has been transferred into your revocable living trust doesn’t go through the probate process when you die. This is because the trust itself spells out who is to receive that property under the direction of someone who has fiduciary duties. This is much like other items that do not pass through the probate process such as IRAs, 401K plans, annuities or even life insurance. You should always talk through what will and won’t be included in probate with a knowledgeable estate planning attorney.
There are many other advantages to using a revocable living trust which a knowledgeable estate planning attorney can help you understand.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Three Reasons You Should Use a Revocable Living Trust, or any other estate planning matters, please feel free to contact Stephen L. West at 480.461.5341,or Curtis M. Chipman at 480.461.5329. You can also log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.