A Revocable Living Trust is a versatile estate planning tool. It offers flexibility and numerous benefits to individuals during their lifetime and even after they pass away. Know about the 3 important purposes for setting up a revocable living trust in Maryland and how it can help individuals:
To avoid the probate process after death
Probate is a legal process through which a court validates a will and oversees the distribution of assets. It can be time-consuming, costly, and public, potentially causing delays and disputes among beneficiaries.
By transferring assets into a revocable living trust, individuals can bypass probate. This is because the trust remains private and does not require court involvement. This ensures a smoother and faster distribution of assets to designated beneficiaries according to the grantor's instructions.
To let a person continue the use of assets transferred to the trust
A revocable living trust allows individuals to retain control over their assets while alive and designate themselves as the primary beneficiary and trustee. They can continue to use and manage the assets as they did before the trust was established. The trust document outlines how the assets should be managed during the grantor's lifetime and specifies who will take over as trustee upon their incapacity or passing.
To give someone else the authority to make financial decisions
This is another crucial purpose of using an online revocable trust. A revocable living trust helps to designate a successor trustee who can step in and manage the trust assets if the grantor becomes incapacitated or unable to make financial decisions.
The successor trustee can handle financial matters, pay bills, manage investments etc. He / she can ensure that the grantor's financial affairs are taken care of according to wishes. This provides peace of mind to the grantor, knowing that someone trusted and capable will take over the management of assets in case of unforeseen circumstances.
Setting up a revocable living trust serves multiple important purposes in estate planning. It allows grantors to ensure asset management and distribution seamlessly, providing peace of mind for themselves and their loved ones.
Author Bio:
Carl writes often about legal drafting and help. Read a similar blog about revocable trust here at this page.