Revocable Living Trusts
Are you married with children?
Do you have various types of assets including, but not limited to real property, stocks, bank accounts, etc.?
Then you might want to consider discussing with your CPA and attorney the possibility of creating a Revocable Living Trust and transferring assets into it.
What you need to know: Reasons to Create a Revocable Living Trust:
1. Avoid the Probate/Conservatorship Process: a. If you become unable to manage your finances due to some unforeseen circumstance – your heirs will likely have to endure the long, arduous, and costly probate or conservatorship process. A properly prepared Living Trust could enable your heirs to avoid these processes.
2. Better Tax Planning: a. A Living Trust can help avoid or reduce estate taxes, gift taxes, and income taxes!
3. Protection Against Creditors:
a. Living Trusts may help your beneficiaries protect the assets in the trust against certain creditors.
a. Trusts are not public records. Therefore, anyone who is not a beneficiary of the Living Trust does not have the right to know about the assets in your Trust.
Creating a Living Trust:
1. Creating a properly prepared Revocable Living Trust is a complicated process, please be sure to consult with the proper professionals (your CPA and attorney) if you decide to do so.
2. Once a trust is properly created you, as a Trustee, can hold property and/or assets in the name of the Trust. The assets you place in your Trust generally receive the benefits and protections explained above.