It takes careful preparation to distribute your assets according to your wishes when the time comes. Estate planning carries out your wishes after you are gone.
One of the most valuable tools in the estate planning arsenal is a revocable trust. Here are ten reasons why your estate plan should include one.
1. Avoid probate
Probate is slow, creates unnecessary expenses, and violates privacy.
2. Protect assets for your spouse
A bypass trust ensures a surviving spouse can access your assets.
3. Protect assets for your children
An asset protection trust can be beneficiary-controlled, keeping assets safe from future divorce, creditors or lawsuits.
4. Remarriage protection
A bypass trust becomes irrevocable at the death of the first spouse. A surviving spouse cannot transfer or will assets to a new spouse.
5. Protect life insurance benefits
Designate your trust as the primary beneficiary and life insurance proceeds are asset protected for your children.
6. Designate alternate beneficiaries
You can structure a revocable trust to pass down assets to future generations.
7. Protect your retirement accounts
Listing your trust as a contingent beneficiary can allow your minor children to access retirement monies in the face of tragedy.
8. Remote contingent beneficiary planning
This allows you to designate a remainder beneficiary, such as a charity, if all listed beneficiaries predecease you.
9. Name your trustee
The trustee you designate can privately take care of your financial matters, without court involvement, in the event you become incapacitated.
10. Estate tax savings
You may be able to benefit from estate tax planning opportunities.
Do not miss the opportunity to create a revocable trust, one of the best available tools for estate planning.