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What is Covered in a Revocable Trust?

  • Dec 08, 2023

Estate planning is an important part of securing your future and the future of your loved ones. One of the most popular estate planning tools is a revocable trust.

A revocable trust, also known as a living trust, is a legal document that allows you to transfer ownership of your assets to a trustee, who will manage and distribute them according to your instructions. Revocable trusts can be changed or revoked at any time during your lifetime.

A revocable trust is a versatile estate planning tool, and its flexibility is showcased in the diverse types of assets it can encompass. Let’s delve deeper into the types of assets you can place into a revocable trust:

  • Bank Accounts – By transferring your bank accounts into the trust, you’re allowing the funds in these accounts to bypass the probate process upon your death. This ensures that your beneficiaries can access these funds more swiftly and without the need for court intervention.
  • Investment Accounts – Whether it’s stocks, bonds, mutual funds, or other forms of investments, they can all be transferred into a revocable trust. This transfer ensures that the management and distribution of these investment assets align with your specified directives.
  • Real Estate – Whether it’s your primary residence, a vacation home, or rental properties, real estate can be titled in the name of your trust. Doing so can simplify the transfer process upon death, making it seamless for your beneficiaries and avoiding the often cumbersome probate process associated with real estate.
  • Personal Property – This can encompass a vast array of items like jewelry, art, collectibles, vehicles, and other tangible goods. By including them in your trust, you can dictate their distribution or management, ensuring they end up in the right hands or are used in ways you see fit.
  • Businesses – If you own a business, whether it’s a sole proprietorship, partnership, or even shares in a corporation, these can be placed into a revocable trust. This is especially beneficial in ensuring business continuity upon your death or incapacity. By setting directives in the trust, you can provide for a seamless transition of business control and operations to a successor, ensuring that the business continues to operate according to your vision.

There are many benefits to creating a revocable trust, including:

  • Asset Control During Your Lifetime – The person who sets up the trust, often called the grantor, can be its trustee, which means they have control over the assets in the trust. This autonomy is crucial, especially for those who have specific requirements for their assets.
  • Bypassing Probate – One of the significant benefits of revocable trusts is that the assets within them bypass the probate process. This speeds up the asset distribution process and can save on legal fees.
  • Privacy – Unlike a will, which becomes a public record, a revocable trust remains private, preventing public scrutiny of one’s assets.
  • Special Needs Provisions – For families with special needs members, a revocable trust can be structured to ensure that they remain eligible for public benefits.

How Does a Revocable Trust Work?

To create a revocable trust, you will need to work with an estate planning attorney. The attorney will help you draft a trust agreement that outlines your wishes for the management and distribution of your assets. You will also need to name a trustee, who will be responsible for managing the trust assets and carrying out your instructions.

Once the trust agreement is signed and notarized, you will need to transfer assets to the trust. This can be done by retitling your assets in the name of the trust or by signing transfer documents.

After you have transferred assets to the trust, the trustee will be responsible for managing them according to the terms of the trust agreement. The trustee will also be responsible for distributing the assets to your beneficiaries after your death.

The Future-Proof Power of Revocable Trusts

As you look ahead, consider the myriad benefits of revocable trusts, especially if you have special needs considerations. While it’s a tool steeped in legality, it’s fundamentally about safeguarding futures. It’s about ensuring that everyone, regardless of their needs, is provided for in the best way possible.

Falcon Law Group stands at the crossroads of dedication and proficiency. If you or a loved one needs assistance with special needs trust, our team of New Jersey special needs attorney is ready to guide you through the process. Plan today, for a better, more secure tomorrow. Reach out to us, and let’s embark on this journey together.

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