In your busy everyday life, the distant future isn’t always at the front of your mind. Though estate planning is a task that’s often pushed to “later,” having a solid plan for your assets is crucial. It empowers you to handle any unforeseen changes and challenges with confidence.
If you are making a plan for how to handle your belongings well into the future, a revocable living trust could be a valuable tool. At Berkley Oliver, PLLC, our dedicated team of estate planning attorneys is here to help you craft personalized legal strategies that secure your legacy.
What is a Living Trust, and How Does it Work?
A living trust is a legal arrangement designed to manage and distribute an individual’s assets during their lifetime and after their passing. The process begins with the grantor establishing the trust and transferring selected assets into its ownership.
During the grantor’s lifetime, they have control over the trust and can shift around their assets according to their wishes. When setting up the trust, the grantor will appoint a trustee and determine the beneficiaries. In many instances, a grantor will serve as trustee of their revocable living trust until they die, at which point a named successor trustee steps into that role.
The trustee’s main job is to oversee the trust should the grantor pass away or become incapacitated. Additionally, the trustee must ensure that beneficiaries receive trust assets in accordance with the grantor’s wishes and instructions.
Revocable Versus Irrevocable Trusts
While there are several different types of trusts, all belong to one of two categories: revocable or irrevocable. To determine which is best for your situation, it’s important that you know the main differences between the trust types:
- Revocable Trusts: More flexible option that allows grantors to easily modify or rescind (“revoke”) the trust based on their life circumstances and needs
- Irrevocable Trusts: Far more challenging to update but offer unique tax benefits and heightened asset protection
Choosing between a revocable living trust and an irrevocable trust isn’t easy, and the best fit depends largely on your individual goals. If you aren’t sure which type is right for you, consider working with an estate planning attorney who can answer your questions and help you make an informed decision.
Difference Between a Will and a Living Trust
On the surface, a will and a living trust may seem incredibly similar. However, there are some important differences people should be aware of when setting up a plan for their assets.
For instance, a will is a document that outlines your wishes regarding asset distribution and guardianship. The will only goes into effect after your death, and any information outlined in the document will go through a court proceeding known as probate. As part of the probate proceeding, a will also is filed as part of the public court and county records.
Probate is a legal process where a court validates the will of a deceased person and oversees the asset distribution. Since probate is a public and often lengthy process, it can interrupt or delay the smooth transition of your assets to your beneficiaries.
One main advantage of a living trust is that it is not subject to probate, which gives you more privacy and can save your beneficiaries time in the future. Not only that, but a revocable living trust can take effect while you are still alive, granting you even more flexibility and control.
Do I Need a Living Trust if I Have a Will?
While a will is a fundamental component of estate planning, a living trust serves a distinct purpose and can complement your will’s goals. Having both documents will create a comprehensive plan that ensures your wishes are honored and your assets managed seamlessly.
If you’re uncertain about how a will and a trust can work together in your estate plan, reach out to an experienced attorney. They can provide you with personalized, knowledgeable insights.
Importance of an Estate Planning Attorney
Clearly articulating your intentions when establishing a revocable living trust isn’t an easy task. There are a lot of complex legal and financial implications to take into account, and mistakes could throw a wrench into your plans.
Working with an attorney can give you peace of mind that your trust accurately reflects your goals. With their experience, these professionals can provide guidance on how to clearly articulate your vision and navigate potential risks.
At Berkley Oliver PLLC, our attorneys go the extra mile to ensure your living trust fits your needs. We start by learning about your life circumstances, family dynamics, and financial considerations so we can provide advice that works for your unique situation.
Our lawyers are prepared to do everything from navigating tax implications to planning the nuances of your asset distribution. We will work with you to simplify the process of establishing a trust while ensuring that no detail is overlooked.
Kentucky’s Estate Planning Lawyers
There’s no doubt that estate planning is a complex process. Nonetheless, with trustworthy and sound advice, you can rest assured that your affairs are always in order. We take pride in offering our services to clients in Shelby County, Spencer County, and across Central Kentucky.
Your legacy deserves the individual attention and years of experience that our team has to offer. Don’t leave your future to chance; schedule a consultation with Berkley Oliver PLLC today.