What is the purpose of a revocable trust?

A revocable trust, often called a living trust, is a type of legal agreement that enables owners to manage and distribute their assets while they are alive and after they pass away. Revocable trusts offer more flexibility and control over assets than irrevocable trusts since the grantor can change or dissolve the trust at any moment. Even if you utilize an online revocable trust documents provider like TrustBox, you should still speak with a lawyer.

In light of this, why would someone utilize a revocable trust? Revocable trusts are frequently used as a component of estate planning for several reasons.

First off, a revocable trust can aid in avoiding the legal procedure known as probate, which is used to validate a will and distribute assets to heirs. A revocable trust can assist in preventing these problems by enabling assets to be passed directly to beneficiaries without the need for probate, which can be a time-consuming, expensive, and public procedure.

Using an online tool like TrustBox is a smart choice since you may modify your revocable trust several times throughout your lifetime, saving you money on legal fees and ensuring that your papers are always accessible for download.

A revocable trust can also provide you with greater privacy and control over how your assets are distributed. A revocable trust is a confidential instrument that enables the grantor to determine how and when assets are allocated to beneficiaries, unlike a will, which becomes public during the probate process.

Thirdly, managing assets while incapacitated can be done through a revocable trust. The trust will enable the named trustee to handle assets on behalf of the grantor in the event of incapacity without the requirement for court oversight.

A revocable trust can also be used to support beneficiaries who are children or who are handicapped. When distributing assets to these beneficiaries, the grantor may stipulate how and when, and the trustee may either manage the assets on the beneficiaries’ behalf until they reach a specific age or may manage the assets themselves.

In conclusion, persons who desire more control over their assets and how they are distributed after they pass away may find a revocable trust to be a useful instrument. A revocable trust is a popular option for many people even if there are alternative estate planning choices since it provides flexibility, privacy, and the possibility to avoid probate.