Estate Planning: Living Trust Revocable Or Irrevocable

People are always trying to figure out the best way to handle estate planning. There are so many tools and options available that assist you in handling your estate planning needs. From the simple, to the complex there are tools that are designed to help everyone plan their estate. There is no reason to do nothing, planning your estate can generally be done in a matter of a few days and reduces the stress on your family at the time of your death.

The biggest problem when planning your estate if using a living trust is to decide whether a revocable or irrevocable living trust best suits your estate planning needs. When you are considering the various types of estate planning tools available to you, there are many that are very similar and a living trust is no exception. While the main function of both living trust are the same from an estate planning perspective there is some differences in them.

For example, a revocable living trust can be retracted and the property returned to the grantor, or changed in any way the grantor sees fit, up until their death. This allows a revocable living trust to be quite flexible and gives most people who are unsure of exactly what property they will want included in their living trust great flexibility in adding or removing property. This is one of the main reasons many people choose a revocable living trust when considering a living trust. Additionally, you can easily change the trustee of your trust at any time if you feel they are not doing things according to your wishes.

With an irrevocable living trust, you are left to hope your trustee does follow your wishes exactly, or you must seek court help in having a new trustee appointed. Additionally, any property that is transferred to the trust, remains the property of the trust. This means that you cannot cancel, or change your mind about the trust once all of the paperwork is filed. Because of the rigidity of an irrevocable living trust, many people tend to avoid them. Most living trusts are generally structured as revocable living trusts so that assets are still protected, but the grantor still has ultimate control over their property.

The correct estate planning tool for your needs may be different. You may decide that you do not want a living trust at all. This is acceptable, and you are free to decide upon your best solution based upon exactly what your estate comprises of, as well as what your wishes for your assets are. Those who have very few assets or mostly personal possessions tend to find a living trust much too cumbersome and a large hassle. Those who have large amounts of property, or large amounts of money, typically $100,000 or more have found estate planning, living trusts, wills and more to be a very vital tool.

You are not required to have a living trust, but if you are considering one, they are a very wise investment for your estate. With the amount of flexibility that is provided, plus the lack of probate your estate can be completed much easier with a living trust rather than a will for all of your assets. Most will agree that a living trust will not handle all of their needs, but it greatly reduces the amount of property that must be included in a will.

With proper research you can tailor fit your estate planning to include the aspects that are most important to you, help reduce the estate taxes due, help reduce the probate costs, and ensure that your property is handled exactly how you wish it to be managed. With good estate planning, your heirs and beneficiaries should not experience great stress from your assets and estate while dealing with a very stressful time.

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