If you are creating an estate plan to protect your legacy, then you may want to consider adding a revocable trust. A revocable trust allows you to transfer assets to a trust that is managed by a trustee. The trustee is responsible for distributing trust funds and other assets to beneficiaries, including family and loved ones.
You can use a revocable trust to control how your assets are distributed after your death. While revocable trusts don’t offer the same asset protection that you get with an irrevocable trust, they are infinitely more flexible. With that in mind, here are the answers to some common questions:
Can you alter a revocable trust?
Yes. One of the main benefits is that a revocable trust can be altered at any time. This can be helpful, for example, if you want to add new assets, such as a vehicle or real estate, to your revocable trust later in life.
You may even consider adding or removing a beneficiary from your revocable trust. For instance, while you may have your children as primary beneficiaries of a trust, you might also add your grandchildren.
What happens to a revocable trust after you pass away?
If you have a revocable trust when you pass away, your trust becomes an irrevocable trust. An irrevocable trust cannot be altered, which can protect assets from creditors and estate taxes. Your beneficiaries can still gain access to their inheritance.
Have you explored all of your trust options?
A revocable trust is not the only legal document you can add to your estate plan. You may want to consider your other trust options, such as a charitable trust, incentive trust or generation-skipping trust. If you are unsure where to start, you may want to seek professional legal guidance to learn more.