For those who live in Spokane, Washington, establishing a revocable living trust can be a very good move to make when creating your estate plan. There are many benefits of revocable living trusts, which can make this a more accessible and beneficial option for those who want to better protect their assets and prepare for the future. However, before you start the process of establishing a revocable living trust, you first need to hire an estate planning attorney in Spokane who can help ensure you create this legal document correctly.
What Does a Revocable Living Trust Do?
Before we dive into the advantages of revocable living trusts for those living in Spokane, you first need to understand what a revocable living trust actually is. A revocable living trust is a legal document that allows you to manage your money and property as a grantor. You will then be able to name a trustee who will manage the property that is placed into the trust.
Like many other estate planning documents, a revocable living trust names beneficiaries who you wish to receive your assets after you have passed away. The job of the trustee you have named in this document will be to follow your instructions, manage assets, and disperse assets to the right beneficiaries.
A revocable living trust is different from an irrevocable trust as it allows you, as the grantor, to make changes to the terms of the document as you see fit. This could include:
- Adding or removing beneficiaries
- Changing the trustee
- Changing your instructions
You also have the ability to completely dissolve the revocable living trust so that you are able to regain ownership and full control of the assets it was protecting.
If you have decided that a revocable living trust is the right option for you, you need to hire an estate planning attorney in Spokane to help you set up this document. Even the most straightforward estate planning documents need to be legally sound so that there are no issues when it comes to dispersing your assets after you have passed away. An estate planning attorney will ensure this document is legally binding and protects the best interests of yourself and your beneficiaries.
Revocable Living Trust Benefits
Now that you understand the difference between a revocable living trust vs an irrevocable trust, what are the revocable living trust advantages? Anytime you are creating or updating your estate plan, you need to have a thorough understanding of what each legal document does. This is also where having an estate planning attorney can come in handy, as they can help you better understand the legal documents you need and the benefits they each provide.
Here are some of the specific benefits of a revocable living trust for those living in Spokane.
Asset Management
The primary benefit of a revocable living trust is that you have greater control when it comes to asset management. Property that has been put into the trust will remain available to you so that you can continue benefiting from it.
Another benefit regarding asset management is that any assets in a revocable living trust can be immediately available to the trustee after you have passed away. Having these assets available as soon as possible is crucial when it comes to taking care of certain financial duties, such as paying estate taxes, paying off debts, or managing administration expenses.
A revocable living trust also ensures investment management will go on uninterrupted no matter the circumstances. This is possible even if you become incapacitated or after the time of your death, as your trustee can continue to handle your investments.
Bypassing Probate
Another very important benefit to understand about revocable living trusts is that they can help you avoid probate. Many people in Spokane use revocable living trusts as a way of providing their loved ones with inheritances without the need for a time-consuming and expensive probate process.
Because this legal document can help you avoid probate, it also improves the privacy of your legal affairs and those of your beneficiaries. This is because the trust administration does not require the involvement of a public court process, which would make these matters public.
An estate planning attorney can also provide other strategies for avoiding probate, especially when it comes to certain types of assets.
Ongoing Updates
Unlike an irrevocable living trust, a revocable living trust can be altered and updated continually as your situation changes. This can help to take the stress off of your shoulders since you can always go back and alter different terms you added to your trust.
For instance, you may want to remove a family member as one of the beneficiaries, or you may want to add a beneficiary if you have a new grandchild. You could even remove the current trustee and replace them with someone else if you had a falling out.
Additional Incapacity Planning
A very important aspect of any estate plan is incapacity planning, no matter how old you are or your current health. A revocable living trust gives you the option of putting a loved one or an advisor in a position to manage your affairs if you become incapacitated.
This person will act as the trustee or successor trustee and will follow the instructions you have provided in your revocable living trust. They can take over your affairs if you were to become disabled, develop a serious illness, or simply become unable to manage your own affairs.
Not only will this help to give you peace of mind, it will put protection in place for yourself and your loved ones. This ensures your assets will go to the right people, and your last wishes will be respected even if you can no longer advocate for yourself.
Get in Touch With an Estate Planning Attorney Today
If you want to explore more of the benefits of a revocable living trust for estate planning, reach out to an experienced estate planning attorney at Legacy Law Group in Spokane, Washington. Contact us today at 509-315-8087 to speak with one of our attorneys to get the process started.
