Ease Of Transfer With Revocable Living Trusts
When you break it down to its simplest form estate planning should be anything but complex. The basic objective is to take what is yours and pass it on to the people of your choosing at the time of your death–how complicated is that? Unfortunately things like the estate tax, capital gains tax, the gift tax, and the probate process often force you to engage in somewhat complex strategies just to keep your assets intact. That’s the way it is and it isn’t going to change any time soon, but it is still a good idea to do what you can to keep the matter as simple as it can possibly be.
One very efficient way to pass your assets along to your heirs in the manner of your choosing when you pass away while retaining full control of the assets while you are alive is through the creation of a revocable living trust. The way that you would typically utilize this vehicle would be to fund the trust and name yourself as the trustee and the beneficiary while you are still alive. You appoint a successor trustee and a successor beneficiary or beneficiaries to assume these roles after you pass away. So while you are living you can do whatever you want to do with the assets in the trust, and since it is revocable you can change the terms, including the future beneficiaries, or dissolve the trust entirely.
The primary reason why you might choose to establish a revocable living trust is to enable a quick, inexpensive, and hassle-free transfer of assets to your heirs upon your death. Unlike property that is left in your estate, the assets in the trust are not subject to the probate process, which is costly and time consuming. Your beneficiaries need only communicate with the trustee to have access to their inheritances, which will be distributed in accordance with your wishes as stated in the trust agreement.
