Revocable trusts can be an important estate planning element

Creating an estate plan is a critical step for all adults because it’s a chance for them to make their wishes known. There are several components that you have to think about when you’re making your estate plan, many of which set the plan for your assets after you die.

Your will is one option for passing along assets, but it’s not suitable for all assets. Trusts are another option for doing this. When you review trusts, you’ll notice some are categorized as revocable. There are very specific benefits and drawbacks to remember if you’re considering a revocable trust.

You can change the terms

A revocable trust can be changed or even canceled as you see fit. This allows you to add or remove beneficiaries when necessary. You can also change the terms of the trust so it reflects your wishes.

Assets bypass the probate process

Assets you put in a revocable trust don’t have to go through the probate process, which allows your beneficiaries to receive the assets sooner. This lets your beneficiaries have privacy since what they receive won’t be made public.

No protection from creditors

You retain control of the assets after the trust is established and funded, so those assets aren’t protected from claims by creditors. This means your creditors can stake a claim on anything in the trust if they’re successful in a lawsuit against you.

A comprehensive estate plan outlines what you want to happen if you become incapacitated and when you die. Having everything set up can help your loved ones during a stressful time. Contact us online or call today for a free consultation with Pennington Law, PLLC.