When people think of trusts, they often think of trust companies and trust-fund kids, which give the impression that trusts are for the rich and famous. In fact, revocable living trusts are a great estate planning tool used by millionaires and those with more modest estates. If you own real estate and have multiple children or beneficiaries, a revocable living trust is likely the best way to keep your assets out of an expensive probate process and distribute them directly to your family.
A revocable living trust is an alternative to a will that controls where your assets go upon your death. The main difference between the two is that a will has to go through probate, but a trust distributes assets to beneficiaries outside of the probate process. When you create a revocable living trust, you appoint a trustee, like a spouse, child, or close friend, who will distribute the trust assets according to your instructions.
In addition to keeping your assets out of probate, revocable living trusts are used to reduce estate taxes, transition a family business to the next generation, protect assets for young or foolish beneficiaries, and manage the family cabin. If you would like to discuss whether a revocable living trust is right for you and your family, contact the Estate Planning Attorneys at Bolt Hoffer Boyd Law Firm.