Revocable living trusts are very useful for a wide range of people. You do not have to be rich to benefit from the creation of a revocable living trust. In fact, these trusts do not satisfy the objectives of very wealthy people.
One of the major benefits that you derive when you create a revocable living trust is the ability to facilitate asset transfers outside of probate. This is a legal process that your estate must pass through if you use a will to direct the distribution of your personally held property.
There are some reasons why you may want to avoid probate. For one, it is a time-consuming process that can take close to a year in simple and straightforward cases. There are also some significant expenses that can accumulate during probate, and these expenditures reduce the value of the estate that is being passed on to the heirs.
When you use a revocable living trust as a vehicle of asset transfer, the beneficiaries receive distributions in a timely and direct fashion outside of probate.
Role of the Trustee
If you create a revocable living trust, you are called the grantor of the trust. The trustee is the person or entity that will administer the trust. The trustee manages investments, and the trustee distributes assets to the beneficiaries in accordance with the wishes of the grantor.
With a revocable living trust, you as the grantor can act as the trustee while you are alive. You can also act as the beneficiary. This provide you with ongoing control of the assets, and this arrangement is comforting to many people.
When you create the trust agreement, you name a successor trustee. This is the person or entity that will administer the trust after your passing.
Any adult who is of sound mind can technically act as a trustee, but you may want to consider the utilization of a corporate trustee such as a bank or a trust company.
When you use a person, you have certain inherent drawbacks. There are longevity issues, and there can be conflicts of interest. Plus, do you really know anyone who has experience and expertise administering living trusts?
If you utilize a corporate trustee, you can be certain that there are no conflicts of interests. There would be no concerns with regard to longevity, and you can be certain that the trust will be properly administered by experienced professionals.
Free Report on Revocable Living Trusts
To learn more about revocable living trusts and the role of the trustee, download our special report. This report contains a great deal of valuable information, and you can obtain access to your copy free of charge.
Click this link and follow the simple instructions to get your copy of the report: Hartford CT Living Trust Report.