Signs it’s time to adjust your estate planning
Creating a trust is the best way to make sure you have total control of your wealth through estate planning. One of the most flexible trusts is known as a revocable trust. People like revocable trusts because unlike a will, they do not go through the probate process, and that saves your family and loved ones a lot of time, money and stress. But it’s not the type of plan you can set and forget.
Managing your revocable trust
What is a revocable trust?
A revocable trust, also known as a living trust, is managed, revised, and in some cases canceled by the grantor and only the grantor, up until their death. Following the death of the grantor, assets are distributed accordingly to the beneficiaries.
Funding your revocable trust
Once you decide a revocable trust is the best option for you, take a minute to understand how to fund it. According to The Balance, funding a trust is the process of taking assets titled in your name and retitling them into your revocable trust. These assets can include any real estate titles, your life insurance policy, stocks, bank accounts, cars and other vehicles, as well as copyrights and patents. And remember, since this is a living trust, you can change how your assets are distributed whenever you need to.
When to adjust your trust
As circumstances change throughout your life, you will want to modify your trust to reflect those changes. Marriage or divorce, having a child, entering retirement, and a significant change in financial status are all viable reasons to alter your living trust. Further and far more grim circumstances include: following the death of a beneficiary, or if a named trustee passes away or is incapacitated.
The great thing about a living trust is once you make one, you have complete control over it. Take advantage of this and ensure your wishes are properly documented and your family protected. Contact Anselmo Lindberg & Associates for more information about revocable trusts and how to get one started.