While wills are one of the most important types of legal documents in every adult’s life, it is not the only kind of estate plan that can help safeguard one’s wealth. When you create a revocable living trust, you can keep your assets private and streamline your family’s inheritance distribution process.
In this blog, we will discuss two key benefits of a revocable living trust (RLT) in New York:
Your RLT can avoid probate
When you pass away, your family will need to file a formal administration process of your will and estate. Also known as probate, this legal procedure is open to the public and your creditors, which can be a source of tension for your grieving family, relatives and friends.
Depending on the size of your estate and its tax liabilities, the duration of your probate case may turn lengthy and become expensive. When you establish an RLT, you help skip probate for most of your assets. This is because the assets that you place on your trust already have their assigned beneficiaries.
Your RLT can protect you in case you become incapacitated
As you grow older, you may realize that you also need to start prioritizing your health. One effective way to do this is by planning for your future incapacity. When you create an RLT, you can appoint a “successor trustee” that can manage your trust’s affairs and written directives for you.
Since your trust is revocable, this also gives you the flexibility to appoint a new successor trustee or add a second one in case you change your mind in the future.
With proper estate planning, you can safeguard your future
By understanding what makes an RLT important, you can figure out how to best protect your wealth and your loved ones’ future inheritance.
