Estate planning attorneys in North Carolina use different types of trusts to accomplish goals such as helping their loved ones avoid the probate process. Although the laws provide for numerous varieties of trusts, one of the major distinctions between types of trusts hinges on whether a trust is revocable or irrevocable.
Revocable trusts are the primary tool estate planning lawyers use to help clients avoid probate. At Brady Cobin Law Group, PLLC, we tailor many types of trusts to clients’ situations to help them protect their families and reduce the burdens on loved ones. Here we examine the benefits of a revocable trust.
Understanding Revocable Trusts
When a trust is revocable, the person who creates the trust retains the ability to change it or even dissolve it. The trust arrangement can last for a short period of time or continue until the person who creates it passes away.
A trust is an entity created under the law to hold and manage property. Some people think of it as a vessel that can hold all types of property, including real estate, brokerage accounts, vehicles, and personal items.
The person who creates the trust is usually referred to as the grantor because they grant their property to the trust. Once property is transferred into the trust, it is managed by the trustee. The person who gets to spend the money and use the property in the trust is the beneficiary. In many popular revocable trust arrangements, the grantor also serves as their own trustee and beneficiary. This is not true with most irrevocable trusts, where the grantor loses control of the property permanently once they transfer it to the trust.
How a Revocable Trust Works
The most popular use of a revocable trust is often referred to as a “living trust.” Individuals or couples create a revocable living trust, transfer their home and other assets into the trust, and then continue to use and manage everything just as they did before. They live with the trust almost as if it did not exist.
When they pass away, the property in the trust does not become part of their estate. If their goal was to avoid the probate process and they set up ownership of their assets properly, then they will leave little or nothing in their estate. With no estate, there is no need for property to go through the probate process in court. Instead, the property owned by the trust passes directly to successor beneficiaries named in the trust documents. Beneficiaries can gain access to assets right away instead of waiting six months to a year for property to go through probate. This saves considerable expense, avoids delays, and keeps the passage of property as a private affair.
Experienced Revocable Trust Attorneys Can Help You Protect Loved Ones with a Revocable Trust
Revocable trusts provide an elegant solution to the challenges families face when loved ones pass away. By taking the time to establish and fund a revocable trust now, you can save your family from the confusion and expense of probate and allow them to wind up affairs quickly.
To learn more about how the knowledgeable legal team at Brady Cobin Law Group, PLLC could prepare a revocable trust to meet your needs, contact us now to schedule a confidential consultation.