One of the many tasks to cross off your list before you die is establishing who will receive your property and assets. If you want to maintain tight control over where your belongings end up after your death, you can consider creating a revocable trust.
At Sawyer & Sawyer, we offer revocable trust assistance for clients throughout Orlando and Central Florida. Contact us today at 407-909-1900 to find out how we can help you.
What Is a Revocable Trust?
A revocable trust is a legal entity that holds specific assets and property for beneficiaries. The assets held in a trust are not subject to probate, allowing beneficiaries to receive them almost immediately after the trust owner dies.
Trusts can contain all types of property, including:
- Real estate
- Vehicles
- Personal items
- Brokerage accounts
- Money
You can continually add to or change the assets held in a revocable trust as desired.
Trusts have three primary components:
- The settlor (grantor/trustor) establishes and places assets into the trust.
- The trustee manages the trust.
- The beneficiaries receive the property within the trust.
Revocable Trust vs. Irrevocable Trust
The primary difference between a revocable trust and an irrevocable trust is flexibility. You can alter the terms, assets, and beneficiaries in a revocable trust at your discretion without a lengthy or arduous process. Meanwhile, you cannot change the terms of an irrevocable trust without a court order or approval from the beneficiaries.
However, revocable trusts offer a few disadvantages compared to irrevocable trusts as well. Because revocable trusts are so flexible, the transferred assets in these trusts are not protected from creditors as they would be in an irrevocable trust. The assets in the trust are also subject to estate taxes after the owner dies.
Our legal team at Sawyer & Sawyer can help you determine the right type of trust for your estate plan.
Why Establish a Revocable Trust?
People choose to establish revocable trusts for a range of reasons. Many people opt to create a revocable trust in adjunct to or in place of a will.
Revocable trusts allow for more privacy, control, and flexibility over assets and beneficiaries than wills. These trusts:
- Allow you to give assets and property to beneficiaries directly.
- Keep the information and records about your assets private after your death.
- Allow your heirs to avoid probate, getting your assets to them faster.
- Are changeable and flexible, allowing you to amend them whenever you wish.
- Can authorize the trustee to take control of your financial affairs should you become incapacitated.
- Allow you to control a guardian’s spending for your minor children, should you pass away.
Altogether, revocable trusts are one of the many aspects of an estate plan that can ensure your wishes are met when you can no longer dictate them.
Contact Our Professional Estate Planning Attorneys Today
Establishing a revocable trust can allow your beneficiaries to streamline the process of obtaining your assets and provide a range of other benefits. Contact our estate planning attorneys at Sawyer & Sawyer today at 407-909-1900, or fill out our contact form, to schedule a consultation.