A revocable trust is a legal instrument that can dictate how a person’s property is managed and distributed during their lifetime or after they have passed away. As with the majority of legal tools, there are both positive and negative aspects to a revocable living trust.
Identifying the positive aspects of revocable trusts could be in your best interests, and might assist you in planning for the future. Outlined below are 4 potential benefits of having a revocable trust in place.
Revocable trusts can create stability for your loved ones
Often, spouses and family members are unaware of the combined assets that a person possesses. Providing your loved ones with some insight into your assets, as well as how they will be distributed, could give your family a sense of stability.
A revocable trust could mean avoiding probate
The probate process can often take its toll on those involved due to the length of time and costs involved. A revocable trust could facilitate the transfer of your assets to family members without the oversight of the courts.
Your estate could be protected from legal challenges
Although there may be legal challenges against revocable trusts, it can be extremely difficult for parties to be successful in these pursuits. Typically, a will must go through probate, which leaves some scope for legal scrutiny and challenges. Whereas, a revocable trust can be arranged in a way that will bypass this. Having a revocable trust could be the best way to ensure that your sincere wishes are carried out.
Having an understanding of the common misconceptions surrounding revocable trusts could be in your best interests. When planning for the future, it is important to remember that you have legal rights and protections.