Estate planning is a very important part of getting older, and a sign of being organized and smart when it comes to making decisions regarding the future of your family. There are many things that need to be taken care of, and it can be overwhelming. It’s very critical to get to retirement with the peace of mind of knowing that assets are accounted for, protected and taken care of long in advance. It will allow you travel and enjoy your family and your golden years in peace.
The truth is, every person who works, has assets to their name and wants to keep things in order has to take care of their financial matters as soon as possible. It should never be left to the last minute. No one is immune to the challenges of poor estate planning. Just look at how some of the world’s wealthiest celebrities died without accounting for their assets, leaving behind chaos for their families.
For most people, the most important document they build their financial planning on is the will, to make sure that all their assets are accounted for in the event of their death. This is what most people consider to be the only option when it comes to their estate planning. But nowadays, revocable living trusts have become a popular new option for those who don’t want to get a will. What benefits does this document offer and why is it better than a will for some people?
People are living a lot longer these days, and retirement isn’t just a 10 year period, it can be a lot more than that. Bearing that in mind, the best estate planning options have to take that into account. Circumstances can change, and people want to be able to modify, or amend their estate planning as they please. In some cases people may want to cancel the trust altogether and a revocable living trust makes this a possibility. It is created when you’re still alive, which gives you the chance to change it to suit a change in circumstances. It’s different from an irrevocable trust which cannot be edited or completely removed. You will get a lot more control over your matters and a lot more freedom to change it with the former, so it’s definitely worth considering.
Court-Supervision vs. A Trustee
According to The Balance, there is one major point of contention people have with wills, and that’s probate. The processing of a will is something many people dislike because it’s invasive. “Probate is a court-supervised process that’s required when someone dies leaving a will—or even if they don’t leave a will. The estate must pass to their heirs and beneficiaries, and probate is the legal process by which this is accomplished.”
This is where a revocable living trust comes in as an attractive alternative for people. Instead of probate, the decisions in a living trust are determined by a trustee instead, so the matter can be dealt with discreetly. Financial issues are already such a sensitive subject, and the involvement of the courts only heightens tensions and makes the process more complicated. A revocable living trust allows you to determine where your assets will go without getting the courts involved, sparing your family a possible lengthy and stressful process.
Temporary Mental Incapacity
Wills only take care of your affairs in the event of your death, but what about in the case of temporary injury or mental incapacity? Many people with wills have found themselves in a crisis when there’s no directive after experiencing a serious injury. This is one of the biggest advantages you will have with a revocable living trust. It allows you to stipulate how things will go if you’re temporarily unable to make decisions. Your assets will just get managed by a trustee so there’ll be no process of inheritance. This means you can just pick up and continue when you’re back in good health.
To Wrap Up
Modern estate planning has to consider the fact that people are living a lot longer and family circumstances change. The document that takes care of matters has to be versatile and fluid. Something that is too stringent and static just won’t make the cut for most people today. This is what makes a revocable living trust a perfect solution that allows you to have more say on what happens and more pathways to take when a change needs to be made.