When loved ones pass away, family members are often left with the daunting task of handling the remaining possessions of the deceased. Whether it’s a home, antique collection or household items, dealing with these matters can be difficult in the wake of the grieving process.
But the process doesn’t have to be this way; there are ways to prepare. A revocable trust is one estate planning avenue families should consider discussing with their aging loved ones.
Setting up a trust, particularly a revocable trust, is one avenue worth considering.
An RLT, as it’s often referred to, allows an individual (referred to as a trust maker) to place property in trust on behalf of another.
The trust maker does this while still alive, remaining in charge of the property (as the trustee) until he or she passes.
And, until such time, the trust can be changed or even revoked-just as the name suggests.
Upon death, a successor trustee takes over and handles the distribution of property to the named beneficiaries of the trust.
Many fine revocable trusts beneficial because they are not subject to probate. Property listed passes to intended beneficiaries without going through the daunting estate administration process which often takes months.
Families with aging loved ones who possess real estate or significant assets should have a conversation about trusts, their benefits, and how they can ease the estate administration process if they should pass away.
However, creating an estate plan should be done with the guidance of a legal professional who can offer proper advice on procedures and formalities involved creating a revocable trust or any other estate document.