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What is Revocable Living Trust Agreement?
The living trust agreement is a legal document signed by a trust maker and a notary public which gives detailed instructions on how the property is to be managed and eventually distributed after your death.
The document list the property, names a successor trustee who could be an attorney, an institution, or an individual, and the beneficiary who will hold the ownership of the assets after the trust maker dies. The trustee is the person who will take care of your assets when the trust maker dies. The trustee manages the trust when you no longer can and serves as a representative to ensure the beneficiaries receive the assets. The beneficiaries are the people, organizations, or other entities that will get your property from your trust after your death.
Advantages of a Revocable Living Trust
Many individuals create a living trust as a way to safeguard assets and to help make a smooth transition of assets for their heirs. Here are three main advantages to consider creating a living trust.
Revocable trusts are flexible
Revocable living trusts are flexible because they allow you to make amendments at your discretion. This is particularly suitable for people whose family situations are constantly changing or if they are not sure who they want to name their beneficiaries. That flexibility also makes these trusts a good option for people who want to explore other estate planning options.
Effective alternative to probate
One of the key benefits of a living trust is that it helps your heirs avoid probate court and you can rest assured knowing that your estate and your beneficiaries won’t have to bear with its associated expense and inconvenience of multiple probate proceedings. Probate is a legal proceeding where your assets are distributed to your heirs according to your wishes. Your personal affairs will remain private and will become a matter of public record when it’s submitted for probate.
A living trust offers more privacy
By avoiding probate, your trust agreement remains a matter of privacy. It is not a public record, and no one can see it. Comparing to will, which eventually becomes public record, the trust keeps your asset details and beneficiaries a private family matter. After your death, wills and their important transactions enter into the public record and have to face legal proceedings. Anyone can see your will and who your beneficiaries are and what you are inheriting.
On the other hand, estates in a living trust are distributed in private. No one can see the public records to see where your assets went and who got how much. This safeguards the privacy of your assets as well as your beneficiaries.
Do You Need A Lawyer to Make a Trust?
You do not need a lawyer or notary to make a living trust. If you have a fair situation and your circumstances are clear, you can make your own revocable living trust by using our Form Pros.
Form Pros take the guesswork out of creating legally-binding documents making sure your personal data is 100% secure & private. With a staff of lawyers, entrepreneurs, and tax professionals on board to assist you with questions, and intuitive software to guide you through each step of the process, you can have the documents you need for a fraction of the cost you would pay an attorney.