When someone says, “Revocable Living Trust,” the first thought is usually about the extremely wealthy and the term “trust funds.” But Revocable Living Trusts are often created by those looking to create an estate plan because they provide significant advantages for avoiding probate and letting others help if you become incapacitated. It all comes down to the ownership of your assets—specifically, what is owned by your Revocable Living Trust and what isn’t.
The only types of assets that go through a long probate process are solely-held assets. This means anything owned by an individual without any beneficiaries. When a Revocable Living Trust is created, the trust maker (Grantor) transfers ownership of their assets into the trust, which is then controlled by a Trustee. In almost every case, the Grantor serves as the Trustee, meaning the only thing that really changes with their assets is how they’re titled. When that Grantor passes away, their assets do not have to go through probate because those assets are legally owned by the trust. Avoiding probate saves your loved ones the hassle and cost of a long probate process and gives your loved one’s privacy during your final affairs. An experienced Tampa trust lawyer can help assess your situation and advise you on whether a Revocable Living Trust works for you.
The other advantage of a Revocable Living Trust is the ability to have someone help if you become incapacitated. While the Grantor typically serves as the Trustee of their own Revocable Living Trust. However, Successor Trustees are named to take over the Trust if the Grantor dies, becomes incapacitated, or if they would just rather have someone else handle their financial affairs. A Successor Trustee then has control over all the assets held in the Revocable Living Trust and can make decisions on the Grantor’s behalf. This situation is extremely useful as it helps avoid getting the courts involved with conservatorship hearings.
Just keep in mind that if the Grantor has any solely-owned property outside of the Revocable Living Trust, then a Power of Attorney will be needed to handle financial matters while the Grantor is still alive, and a probate estate must be opened when the Grantor’s passes away.
If you would like to learn more about estate planning with a Revocable Living Trust, or if you’d like to discuss your current estate plan and Revocable Living Trust, please contact us at (813) 438-8503.