What You Should Know About Revocable Living Trusts
Unlike irrevocable living trusts, a revocable trust can be changed or revoked by the grantor any time, and no specific reason is necessary. As a North Fort Myers, Florida attorney can explain, as the grantor, you can cancel the trust outright, change the terms, and remove or add property.
In typical cases, if you are mentally competent and healthy, you can be both grantor and trustee of your trust. This is also possible, although less common, with an irrevocable trust. You should also know that a revocable trust will become irrevocable when you die.
Similar to a will, the revocable trust will outline how property will be disposed and how it should be managed in the event that you are:
- overcome with dementia; or
- are otherwise incapacitated.
Do I need a revocable living trust?
The main purposes of a revocable trust is probate avoidance when you die and to avoid guardianship if you become incapacitated. Keep in mind that avoiding probate will not be easy. Successful probate avoidance involves re-titling all of your assets in the trust's name.
Any asset that is subject to probate and not under ownership of the trust would have to be probated. Additionally, another option for avoiding guardianship is to have an executed health care surrogate and durable power of attorney.
It's true that a revocable trust can make your estate planning more complex and costly. Furthermore, if the trust is not properly funded, you will not be successful at probate avoidance. For those who are more advanced in age, a revocable trust may be worth the cost and extra effort for funding and administering.
A younger person, however, may benefit more with a will and an advance directive. Surely you have many questions and concerns about living trusts. You should write down all of your questions and bring it with you when you meet with a North Fort Myers, Florida attorney.
Help from a North Fort Myers, Florida Attorney is Just a Phone Call Away
North Fort Myers estate attorney Matthew A. Linde understands firsthand the importance of careful estate planning and the complexities of financial legal matters, such as probate, tax litigation and guardianship. For help with your estate planning concerns, contact our Fort Myers office to schedule a one-on-one meeting with a professional who can answer your questions - 239-939-7100 or 844-764-5492.