Revocable living trusts provide families the opportunity to streamline the transfer of property following the death of a loved one without having to deal with probate court. When a revocable living trust is done properly, the transfer will be handled privately, and will prevent sensitive details about one’s estate from becoming public knowledge. Ultimately, the benefits of a revocable living trust are far reaching, but attempting to prepare it without professional assistance can lead to a disaster.
Access to guides about revocable living trusts are everywhere today – from instructional books, to software and online support systems. It is very easy to find information on how to make your own revocable living trust. Still, the importance of a revocable living trust is far too great for the matter to be left to chance. Instead of taking a do-it-yourself approach, you should consider the benefits of professional assistance.
How Revocable Living Trusts Work
Before navigating the benefits of professional legal document preparation, it is important to understand what a revocable living trust is and what the benefits are. Living trusts are separate legal entities that are established to hold ownership of a portion of or all of a person’s property. After creating the revocable living trust, the creator is essentially funding the trust by re-titling the assets into the trust.
In legal terms, the creator of the revocable living trust is referred to as the grantor. In a majority of cases, grantors also serve as trustees, who control and manage the assets placed in the trust. It is worth noting that grantors can also choose to allocate the responsibility to another person, or professional organization. Living trusts are typically prepared with power of attorneys and medical directives. The general purpose of a complete living trust package is to cover the following:
- The financial, legal and medical issues during the grantor’s lifetime upon incapacitation;
- How assets will be transferred after death.
Even as trustees will continue to have control over the assets placed into a trust, they also have the ability to name successor trustees. These are individuals who step in and control the trust should the trustee become incapacitated and handle the legal transfer of assets to the named beneficiaries in the event of the trustee’s passing. The process will avoid probate because the trust essentially has not died, and it continues to hold ownership of the assets even though the trustee has passed away.
Ideally, revocable living trusts should be considered when:
- Attempting to simplify an estate plan, thereby saving time and money by avoiding the probate process
- Planning for a time of unexpected mental or physical incapacity
- Planning to distribute assets after death
When It Comes to Preparing Legal Documents, Mistakes Can Be Costly
As previously mentioned, there are resources available where people can find help preparing their own estate planning documents. Even if these methods seem simple, big problems can arise when not done correctly. Getting confused about who is the grantor, trustee, successor trustee, alternates, beneficiaries, guardians, or custodians can conflict with the grantor’s wishes or cause a probate case to be filed to sort it out. Another common problem happens when not all the documents are prepared and recorded. Each document needs to work together for someone’s estate to be handled as smoothly as possible. The benefits of professional assistance are:
- Ensuring that all estate planning elements are not missed
- Support from a reputable company, who is dedicated to bring customized results
- Peace of Mind
Work with an Established Revocable Living Trust Legal Document Preparation Service
Creating a revocable living trust has several advantages and while it may seem like the process to form a living trust is straightforward, the reality is that having professional legal support is highly beneficial. If you are considering forming a revocable living trust, you can call Just Document Preparation. We understand that the idea of creating a living trust can be intimidating. A living trust can help you and your family, and it can also serve to protect your legacy, but only when it is done correctly. Providing dedicated experience since 1996, Just Document Preparation, will work hard to so your living trust stands strong at a time when it is needed the most.