Having a trust as part of your estate plan is one of the most effective ways to avoid delays in probate court after you pass away. Trusts are called many things, such as a living trust, revocable trust, or revocable living trust. In today’s blog from the estate planning attorneys at Checkett, Pauly, Bay & Morgan we answer the question, “What is a revocable trust?”
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The Definition of a Revocable Trust
A revocable living trust is so named because you set it up and manage it during your lifetime. It’s revocable because you can change the terms of the trust at any time. A will dispurses your assets after you die, but a trust occurs before that. You have many estate planning options, and a revocable living trust is one viable choice that gives you control over who receives your assets. The key to avoiding probate altogether is to fund the trust.
The Flexibility to Manage Assets
If you want flexibility when managing your assets, a revocable living trust offers one of the best solutions. You can name anyone as your personal representative, or the executor of the trust, so long as they are over the age of 18 and judged to be of sound mind. The personal representative has the authority to manage your assets at your direction. This includes getting documents signed properly, selling property, and dispersing money from bank accounts in whatever increments you see fit.
The Trust Agreement
Estate planning, including revocable trusts, involves three parties: The owner of the assets (you), the personal representative, and the beneficiaries who receive the assets. Your personal representative is the person who has the authority to give your assets away at your instructions. The beneficiaries are usually your family members, but they could also be organizations.
You have the sole authority to amend, restate, or revoke the trust at any time while you’re alive. As a trustor, you can set time frames for giving your property away, such as when someone turns a certain age or only after the trust has been in place for a certain amount of time. It’s your estate, and the estate planning attorneys at Checkett, Pauly, Bay & Morgan, LLC can help you determine the best way forward.
Who needs revocable trusts?
One of the most prevalent myths about revocable trusts in Missouri is that they’re only for the rich. This is absolutely not the case. Properly funded family trusts are the one sure way to avoid probate. A house filled with furniture and family heirlooms you want to leave to your grown children is more than worthy of a revocable trust. Consider the house’s monetary value at hundreds of thousands of dollars and the sentimental value of what’s inside of it.
Estate Planning at Checkett, Pauly, Bay & Morgan, LLC
Every person’s estate plan is different. The experienced estate planning attorneys at Checkett, Pauly, Bay & Morgan can discuss your options based on your unique situation. Contact Checkett, Pauly, Bay & Morgan or call (417) 358-4049 for more information. The first consultation is always free.