Right now, you may be sitting in your Texas home contemplating when and how you will begin crafting your estate plan. If you are like many folks, you might feel uncomfortable thinking about your own mortality. However, there are many great reasons why you should create a revocable living trust as soon as possible.
Assets in your trust avoid probate
When it is properly constructed, a revocable living trust allows most or all of your assets to avoid probate. It is important to note that you must title assets in the trust’s name before you pass. Otherwise, they will likely revert back to your estate and be subject to probate.
The process of settling an estate costs less
Since there is no need to go through probate, there is no need to pay an attorney or other probate fees a state might charge. Furthermore, trusts are generally harder to challenge than wills. In many cases, will challenges or other motions can extend the amount of time and money spent on settling an estate. Typically, any money that is spent on court challenges or other motions comes directly out of the estate itself. This means that a beneficiary could lose some or all of his or her inheritance.
Maintain your privacy with a trust
The terms of a will are entered into the public record, which means that creditors, members of the media or other family members can learn more about your estate. With a trust, the only people who have access to that information are the trustees and the beneficiaries. As you can be the trustee of a revocable living trust, the beneficiaries may be the only ones who know what they stand to receive after you pass.
If you need help creating or updating a trust, it may be a good idea to do so under the guidance of an estate planning attorney. He or she may be able to help you create a trust or ensure that the one that you have is sufficient to meet your needs.