Is a Revocable Living Trust Right for You?

 Posted on June 27,2014 in Estate Planning

When it comes to estate planning, an increasing number of people are having revocable living trusts prepared by their attorneys.

A revocable living trust goes into effect while the person is still alive, as opposed to a will, which does not go into effect until the person dies. It is referred to as revocable because a person can change or cancel the trust any time they want and for any reason they want, as long as they are mentally competent. The trust only becomes irrevocable when the person dies.

The individuals who are involved in a living trust include the person who created it, the person or people who the creator appointed as trustees, and the beneficiaries of the trust.

With both living trusts and wills, the individual who creates these documents gets to decide how their estate is divided. However, there are several differences between the two documents. When there is a will, then it must be probated in the court system. The probate process usually takes up to a year, which means distribution of the estate is also held up for one year. There are also fees that are deducted from the estate, including attorney and executor fees. Also, the probating of the will and all the details become public record.

There is no probate period with a living trust. This means there is no waiting period. It also means that the person's instructions remain private. A trust also gives a person the option of having their estate pass to their heirs upon their death. Or, her or she may set it up so that part of the estate is passed onto the heirs in increments while still alive.

The attorney who prepares the living will can also help set it up to help alleviate any federal and/or state inheritance taxes. If you are considering setting up a revocable living trust, contact an experienced DuPage County estate planning attorney today.