One thing that we love about revocable living trusts as an estate planning tool is the flexibility. All of our clients will go through the following process or stages of estate planning needs. (1) Alive and well (2) Capacity Issues (3) Passing. When you are alive and well without capacity issues a revocable living trust allows you to easily manage your affairs. You are both the settlor/trustee and beneficiary and you can revoke the document at any time, meanwhile, the creation and proper funding of your trust will avoid the probate process. If your like most people, after transitioning from the alive and well period you may experience some capacity issues. Your revocable living trust can be set up to have an alternate trustee should you become mentally unfit to manage your own affairs. Finally, when the inevitable comes, the revocable living trust, if funded properly, can allow you to pass a significant portion (if not all) of your estate outside of the probate process. This means more money for your family or loved ones and less burden in administering your affairs.
If you haven’t taken the time to fund your revocable living trust you’ve simply created an empty box with no real power to do anything for you. Until you fund your trust, it doesn’t do any of the things you intended. Most titles and beneficiary designations are not difficult to change. In essence, in order to fund a trust, you are re-titling assets. For example, instead of the account of John Doe, create a new bank account titled in the name of the living trust, “Revocable Living Trust of John Doe.”
For the reasons contained on this webpage, our office frequently suggests Florida Revocable Living Trusts as an estate planning tool for our client. They can be adjusted to fit individual estate planning needs and are a great and relatively simple way to avoid the probate process. Nonetheless, Revocable Living Trusts are not for everyone, and may be unnecessary in certain situations. If you are considering adding a Florida Revocable Living Trust to your estate plan we may be able to help. Give us a call or send a message through our site for a no-obligation free consultation.