A Revocable Trust A Revocable Trust, also known as a living trust, is one of the best estate-planning tools the attorneys at Jurado & Farshchian, P.L. can create for you.
A revocable trust can be a great way to avoid probate and efficiently manage and protect your assets after your death, which is something for which your beneficiaries will be immensely thankful. Many benefits come with a Florida revocable trust, which other estate-planning documents in Florida, like a will, cannot offer. Avoiding Probate with a Revocable Trust As mentioned earlier, one of the main benefits of using a revocable trust is that, unlike a will, a revocable trust will allow your estate to avoid probate and be distributed directly to your beneficiaries. This instrument will help save thousands of dollars and hundreds of hours.
As you probably know, probate is the legal process an individual’s estate goes through when he or she passes away owning assets in his or her name. Besides the high amounts of time and money required to complete probate, the big problem with this process is that the court that handles your case will have full control. With a revocable trust, you have total control over what happens to your assets when you are no longer around. Keeping Control with a Revocable Trust A revocable trust is “revocable” because you have the power to change, amend, alter, or revoke the trust altogether at any time.
A Florida revocable trust is a document that instructs a trustee on how to distribute the assets when you pass away. Generally, you are the manager of your revocable trust while you are alive. However, if you are unable to manage your trust, you get to choose the person who will manage your assets for you, and a court will have no control over this decision.
A revocable trust is similar to a will in many ways. However, unlike a will, revocable trust assets do not pass through probate; they pass from your name to the name of the revocable trust. In other words, you no longer own the assets; the trust owns the assets.
When you create a revocable trust, you keep total control of any assets you transfer into it. Usually, when you create a trust, you are the trustee and the beneficiary, which means you can revoke or amend the trust at any time. However, we recommend that other trustees be named in a revocable trust. This additional step can be extremely helpful in the event you become incapacitated, as your co-trustee can continue to manage your trust. Managing a Florida Revocable Trust If you have a trust, once you pass away, your trustee will have the duty of administering your estate. Such overseeing occurs efficiently and privately. When an estate goes through probate, the process is public, expensive, and time-consuming, and the personal representative must follow strict guidelines. Therefore, you should consider transferring your assets into a revocable trust.
When you pass away, any assets that are not in your revocable trust must go through Florida probate. Thus, we recommend using a Pour-Over Will in conjunction with your Revocable Trust. A pour-over will tells the Florida probate court to transfer your assets to your revocable trust when you pass away. Protecting Your Assets with an Asset Protection Trust A Florida revocable trust has many benefits. However, asset protection is not one of them. The assets you transfer into a revocable trust are unprotected from your creditors. If creditor files claims, your assets act as if they were owned by you and are exposed to creditors with valid claims. By using a Florida Asset Protection Trust in conjunction with your Revocable Trust. When used in combination, both documents contain provisions to protect your beneficiaries from your creditors after your death. This is something for which your beneficiaries will be immensely thankful.