For any number of reasons, people may not want the financial affairs of their estates made public after their passing. To help avoid the probate process, which would make pertinent documents matters of the public record, some consider alternative options to a traditional will.
Many looking to bypass the probate process turn to a revocable trust. Before committing to this option, however, it behooves people to have an understanding of this estate planning choice to make sure it will suit their situations, needs and goals.
What is a revocable trust?
According to Kiplinger.com, the revocable trust may serve as a replacement for a will. Through this method, people place assets they intend to pass on to beneficiaries into a private entity, the trust. Immediately upon their passing, the named beneficiaries have access to the assets held in the trust.
As opposed to an irrevocable trust, this option provides more flexibility to creators during their lifetimes. When they establish revocable trusts, the creators may make amendments or revoke them at nearly any time before their passing.
When does a revocable trust take effect?
According to Indiana’s The MoneyWise Matters blog, trusts take effect upon creation. People may move assets into the trust for distribution before their deaths, then, as well as upon their death or after their passing.
Although put off by many, estate planning plays an important role for adults of all ages, health conditions and wealth levels. Therefore, people who have not yet or who have put off reviewing their estate plans may find it helpful to seek legal guidance to determine the right options for their circumstances and objectives.