Revocable Living Trusts
A Revocable Living Trust (RLT) is an instrument that allows its creator, called a grantor, to retain control of the assets placed in the trust while the grantor is still living. The grantor can name themselves trustee and retain the ability to revoke or amend the trust at any given time. This is possible because the assets placed into the trust are not distributed to the beneficiaries until the grantor dies. The creation of RLTs is a complicated and detail oriented process. To ensure that an RLT is created in a way that is statutorily compliant, it is essential to use an attorney that has skill and experience in estate planning. At Carolina Estate Planning, Attorney Jeffrey Bloomfield and his team are dedicated to designing RLTs that accomplish the goals of their clients through careful, cost-effective planning.
Benefits of Revocable Living Trusts
Revocable Living Trusts are often a smart estate planning tool because they offer privacy and convenience to families, among other benefits like minimal fees, and guaranteed security of minors.
- Saves Money: The probate process can be time consuming and expensive. There are fees that are accessed against the estate by the state, as well as attorney, personal representative (sometimes called an “executor”), and accounting fees. These fees are not accessed against an RLT. Also, RLTs can sometimes be structured in a way to avoid taxes that the estate would otherwise have to pay.
- Privacy: Unlike a Will, which is made public record, an RLT can be administered privately, saving the family of the grantor from having their private affairs made public knowledge.
- Convenience: Anyone that has ever served as a Personal Representative for an estate that goes through the probate process can attest to the work and time that must be invested throughout the proceeding. An RLT can circumvent many of the rules that cause these headaches.
- Incapacity: An RLT also allows the grantor to plan for the future and what will happen if the grantor become incapacitated. If that should happen, a successor trustee, which is named when the trust is created, will take over the administration of the trust and handle the grantor’s financial affairs and properties as directed by trust documentation. Also, should the grantor recover from the incapacity, they may once again become trustee and administer the trust themselves.
- Minors: An RLT is an excellent way for a grantor to provide for the financial future of their minor children. It can be construed in a myriad of ways allowing the grantor to decide at what age the children should receive their inheritance. An RLT can also appoint someone the grantor trusts to manage the money until the minor children are old enough to manage it on their own.
Contact Jeff to Learn More about RLTs
You are welcome to contact me by calling 336-221-4457 or via my contact page to begin the estate planning process, including the creation of a revocable living trust. I am happy to answer any questions and help you determine if a Revocable Living Trust is ideal for you and your unique situation.