REVOCABLE LIVING TRUSTS
REVOCABLE LIVING TRUSTS
Helping Our Clients Protect Their Assets Without Giving Up Control
When people think of estate planning and trust administration, it’s typically in relation to providing for family members and beneficiaries. However, it’s important to understand that trusts can serve a variety of purposes — sometimes even allowing the grantor to maintain full control of their assets. Transferring assets into a trust can essentially mean giving properties away when an irrevocable trust is involved. With the help of a revocable living trust lawyer in New Haven County, though, you can gain asset protection and estate planning benefits while ensuring your assets remain yours.
At Legacy Law Partners, PLLC, our team of experienced legal professionals understands how complicated these issues can be. Perhaps you want to provide for a loved one, but you don’t want to give them full access to an inheritance. Maybe you want to have a plan in case you become incapacitated. Then again, it’s possible that avoiding probate is the only goal you have in mind. In these and many other situations, creating your own living trust can be an effective strategy. Contact our law firm today for a free consultation.
What Are Revocable Living Trusts?
A revocable living trust is a legal arrangement that allows grantors (i.e., the creator of the trust) to transfer their assets into a trust during their lifetime. Unlike other types of trusts, this living trust document allows the grantor to maintain full control over the assets they’ve transferred. They can alter beneficiaries, specify how assets should be managed, and even completely revoke the arrangement during their lifetime. They can also dictate how trust property will be managed — and by whom (e.g., the successor trustee) — in the unfortunate event of their death.
These trusts are immediately effective as soon as they’re created. Similar to health care directives, they can preemptively make important decisions should the grantor become incapacitated. Of course, there are some drawbacks to this strategy. For instance, such trusts do not provide many of the tax benefits offered by irrevocable trusts. This is because property and funds remain fully under the control of the grantor. Of course, this is also the reason many people opt for this approach. By maintaining full control, you can dictate how your assets are handled.
Should Your Estate Plan Include Revocable Trusts?
At Legacy Law Partners, our revocable living trust lawyers in New Haven County are constantly asked about these trusts. One of the most common questions relates to their purpose. After all, do you really need to create a trust to maintain control of your assets during your life? Don’t you already have this control? The answer is yes, but this is where the benefits of a revocable living trust become apparent. In most cases, these benefits are directly related to estate planning purposes.
Put simply, these trusts bypass probate in the event of the grantor’s death. Money, property, and other assets would typically have to go through the probate process — which can sometimes be lengthy and even involve estate litigation. Alternatively, revocable living trusts expedite the distribution of assets and avoid the public process of probate. This also provides a level of privacy that many people desire. Like the executor chosen in a will, the successor trustee chosen by the grantor will manage trust property after the death of the latter.
Many people also opt for revocable trusts when they own properties across multiple states or countries. Asset management and administrative burdens are greatly simplified when such assets are consolidated under a single trust. This can prove particularly useful for those who run a business, have property ownership across jurisdictions, or have children from different marriages in different locations. A revocable living trust attorney in New Haven County can help you understand if this approach is right for you.
Can Revocable Living Trusts Minimize Estate Taxes?
While revocable living trusts can prove effective at avoiding the probate process, they don’t offer the same benefits as other strategies that accomplish the same goal. Namely, these trusts will not directly reduce or eliminate any type of estate tax. However, there are indirect ways that this can be accomplished. This is why it’s so important to consult with a revocable living trust attorney in New Haven County before making any important decisions.
Put simply, a revocable living trust is considered part of your taxable estate if you die. However, you can use it in coordination with other estate planning tools to minimize taxes. For instance, your trust document could include provisions that establish charitable trusts upon your death. Additionally, it’s worth noting that states and the federal government often treat taxes differently. In some states, revocable living trusts can minimize estate taxes by transferring assets outside of probate court.
If this sounds complicated, that’s because it is. This is one of the many reasons you should consider speaking with an estate attorney.
Contact a Revocable Living Trust Lawyer in New Haven County
Utilizing a revocable trust rather than an irrevocable trust carries many benefits. Depending upon your unique situation, there may be several reasons you opt for this popular estate planning and asset protection strategy. However, it’s important for you to understand all your options. There are various legal issues and nuances involved in any financial arrangement such as this — and without a full understanding of what you’re agreeing to, it’s not uncommon for undesirable surprises to arise. Fortunately, you don’t have to make these decisions on your own.
At Legacy Law Partners, PLLC, our revocable living trust lawyers in New Haven can assist. We’ll review your situation during a free consultation and help you understand all your options. And if a revocable trust is what’s best in your circumstances, we can help you create a thorough and legal trust document that meets all your goals. Whether you have minimal properties or a large estate, our law firm is committed to helping you secure a favorable outcome. Don’t risk your own financial well-being or that of the ones you care about. Contact us at (203) 446-4725 for your free consultation.
