Should I Set Up a Revocable Living Trust?
A revocable trust is a popular estate planning tool normally established with the assistance of a revocable trust attorney in Orlando, FL to safeguard the assets of an individual. It offers flexibility and protection that you cannot get from some other estate planning options.
At Veliz Katz Law, we have extensive experience in estate planning and trust administration and we are well-equipped to assist you with all aspects of your revocable trust needs. Our goal is to provide you with comprehensive and effective legal services, ensuring that your trust is tailored to your unique needs and goals and that your wishes are carried out as you intended. Contact us now to schedule a free initial consultation with our Florida estate planning lawyers and learn if you can benefit from a revocable trust.
What is a Revocable Trust?
A revocable trust, also known as a living trust, is an estate planning document that outlines what your assets are and how you’d like them handled during your life and after death. Unlike an irrevocable trust, which cannot be changed once it is created, a revocable trust can be amended or revoked at any time, giving you flexibility and full control of the trust and the assets within it. Creating and managing a revocable trust can be complex, which is why working with a revocable trust attorney in Orlando, FL is highly recommended.
A revocable trust consists of three main parties: the grantor, the trustee, and the beneficiaries. The grantor is the person who creates the trust and transfers assets into it. The trustee is the person or entity responsible for managing the trust assets and distributing them to the beneficiaries according to the terms of the trust. The beneficiaries are the people or entities who will receive the trust assets.
What are the Benefits of a Revocable Trust?
Depending on your circumstances and your assets, you may consider creating a revocable trust. This type of trust is considered an effective tool for reducing lifetime expenses, preserving wealth, and protecting your family and assets.
While revocable trusts can be a great option for many individuals, they are not the best fit for everyone. It’s important to weigh the advantages and disadvantages of a revocable trust, as well as your individual circumstances, before making a decision. Our Orlando revocable trust lawyer can help you decide whether a revocable trust may be right for your estate planning needs.
Here are some of the reasons you may wish to consider including a revocable living trust in your estate plan:
Avoidance of Probate
One of the primary advantages of a revocable trust in Florida is that it can help you avoid probate, which is the court-supervised process of administering an estate after someone dies. By transferring your assets to a trust during your lifetime, those assets are no longer part of your estate and will no longer be subject to probate upon your death. This can save your beneficiaries time, money, and stress, and allows for a more efficient transfer of assets. Property can often be distributed to the beneficiaries shortly after the grantor’s death, avoiding much of the delay encountered with probate administration.
Revocable trusts offer greater flexibility than other estate planning tools. Since you can change or revoke a revocable trust at any time, you can make updates as needed to reflect changes in your family, finances, or other circumstances. Because you create it, fund it, and manage it yourself as a trustee while you are alive, you can adjust how it works and what assets are inside it over time. This flexibility allows you to maintain control over your assets throughout your lifetime.
Another advantage of a revocable trust is that it can provide greater privacy for your family. Unlike a will, which becomes part of the public record upon your death, a trust is a private document that does not need to be filed with the court.
A living trust will remain a private family matter if you become incapacitated. Upon your passing, no declarations need to be put on paper to welcome potential creditors, document claims, and challenges to your will. This can help protect your family’s privacy and prevent sensitive information from becoming public.
Hold Property from Other States
If you have real property in more than one state, you may want to put those properties into a revocable trust to avoid having to go through the probate process in each state. A revocable living trust will protect your heirs from needing to administer out-of-state probate procedures.
Provide for You During Incapacity
A properly executed revocable living trust can take care of you if you become unable to care for yourself. By establishing a revocable trust, dealing with your incapacity may be kept private and handled according to the terms of your trust. If you become physically or mentally incapacitated, your successor trustee can step in to enforce your wish without court involvement. This avoids the delay of court-ordered guardianship. Court proceedings to appoint a guardian or conservator can be lengthy, expensive, and are public records.
A revocable trust can also provide some asset protection benefits, as the trust assets are held separately from your personal assets. This can help shield your assets from potential creditors or lawsuits.
What are the Limitations of a Revocable Trust?
While revocable living trusts can offer many advantages, there are also some potential disadvantages to consider. Whether a living trust is right for you will depend on your individual needs and goals. Working with our revocable trust attorney in Orlando, FL can help you evaluate your options and make the best decision for your unique circumstances.
Creating a revocable living trust costs more time and money to set up than simply creating a will. Trusts require more legal documentation which can lead to higher fees. The type of assets you own and what must be done to get them funded into the trust should be carefully considered before you decide to use this estate planning tool.
A living trust only works if your assets are properly funded into it. This can be a time-consuming and potentially costly process, as you may need to retitle your assets or change beneficiary designations.
Lack of Tax Advantages
Revocable trusts do not provide any particular tax advantages. This is because the grantor can revoke the trust at any time and maintain control over the assets. Any income that is earned from trust assets is reported on the grantor’s individual income tax return.
Limited Protection from Creditors
Revocable trusts offer some protection from probate, but they may not offer the same level of protection from creditors as other estate planning tools such as irrevocable trusts.
Living trusts can be complex legal documents, and managing a trust can require ongoing attention and effort. This can be especially true if you have a large or complex estate.
Why Do I Need a Revocable Trust Attorney in Florida?
Creating a revocable trust can be a complex and highly personal process. While some individuals may choose to create a trust on their own, working with an Orlando revocable trust attorneys at Veliz Katz Law can provide many advantages, including:
- Navigate the Law and the Legal Process: We can help you understand the legal requirements, navigate Florida trust laws, and ensure that your trust is properly executed.
- Create Customized Estate Plan: We can help you tailor your estate plan to meet your individual needs, taking into account your financial circumstances, family situation, and other important factors.
- Avoid Mistakes: We can help you avoid common mistakes that could potentially invalidate your trust or cause other issues.
- Update Your Estate Plan: We can help you review and update your plan regularly to ensure that it continues to meet your needs and wishes.
Working with our estate planning law firm can provide peace of mind, knowing that your estate plan is properly structured, up-to-date, and tailored to your unique needs and goals. Contact us now to schedule a free consultation and learn more about your estate planning options that will meet your individual needs and goals.
Call Our Revocable Trust Attorney in Orlando FL Now!
Planning for the transfer of your estate and other assets is one of the most important steps you can take to help your family and loved ones. It’s a process that requires thought and careful consideration of a range of options. Creating a revocable trust as part of your estate plan can provide many benefits. However, it can also be a daunting and overwhelming process.
To ensure that your trust is properly executed and meets your estate planning goals, it’s important to work with Veliz Katz Law’s revocable trust attorney in Orlando, FL. Our estate planning law firm has the necessary experience to guide you through the process of drafting wills, setting up trusts, creating power of attorney documents, and dealing with other estate planning matters. We are committed to providing personalized attention and tailored estate planning solutions to each of our clients in Orlando, Kissimmee, Winter Park, and Maitland.
Whether you are looking to avoid probate, protect your assets, or provide for your loved ones, we can help. We provide guidance and assistance with all aspects of the estate planning process, from creating your trust to funding it and updating it regularly. Contact us now to schedule a free consultation and let us help you protect your legacy and provide for your loved ones. We also provide the following legal services: