After a lifetime of hard work, you want the fruits of your labor to go to your spouse and children, not the probate court or IRS. Fortunately, you can take steps now to shield your assets from being subject to unnecessary taxes and court fees.
In estate planning, revocable trusts are one of the most popular types of trusts in the Gainesville area for several reasons. Not only does it shield your money, investments and valuables from probate, but having a revocable trust also lets you continue to use and control those assets for the rest of your life.
The benefits of a revocable trust
A revocable trust allows you to do the following:
- Avoid probate. When a person dies intestate or with a will but no trust, the distribution of their property is subject to the supervision and approval of a probate judge. But items in a revocable trust bypass probate, saving your family a great deal of time and money.
- Simplify. Similarly, if you own property in states other than Georgia, keeping those properties in trust will prevent those states from opening probate on your estate when you pass away. This will make things much easier for your successor trustee and executor.
- Give you flexibility. You can be the trustee of your revocable trust while you are still alive. A revocable trust allows you to take things out of the trust you previously placed into it, and change who your beneficiaries will be, at any time.
- Asset protection from creditors — for your beneficiaries. While you are alive, your revocable trust does not protect the assets contained inside it from creditors. But you can design the trust so that once your beneficiaries begin receiving an income from it, those funds are safe from creditor judgments, asset division in divorce, and medical expenses.
A revocable trust is a useful tool, but there are more ways you can use your estate plan to protect your assets for the next generation to enjoy. Speak to a qualified estate planning attorney in your area to find out more.