There are some estate planning devices that accomplish multiple objectives, and living trusts are among them.
The primary reason why individuals decide to utilize revocable living trusts is because of the fact that these trusts enable future distributions of assets to the beneficiaries without the hindrances of probate.
Probate is a legal process that can take a lot of time. There are also costs that go along with this process. When you use a revocable living trust rather than a last will to arrange for the transfer of your assets to your heirs, these distributions will take place outside of probate.
Another nice thing about living trusts is the fact that the decisions you make when you originally drafted the terms of the trust are not permanently etched in stone. You can change the terms, and you can act as both the trustee and the beneficiary and have access to and control over the funds throughout your life.
The third thing that is appealing about revocable living trusts is that you can include an incapacity component. A very significant percentage of our nation’s elders become unable to make their own decisions at some point in time.
In cases where interested parties feel as though a particular individual can no longer make sound decisions, the court may be petitioned to appoint a conservator to take over the financial decision-making. You can avoid this by naming a disability or successor trustee who would have the power to administer the funds that have been conveyed into the trust when you created its terms.