When preparing an estate plan, achieving your goals starts with choosing the right tools for the job. For many people, this will involve choosing a revocable trust. Revocable trusts are flexible estate planning tools that can serve a variety of purposes, and, as a result, they will be the right choice in a wide range of circumstances. Learn more from an experienced Trenton estate planning attorney.
What Are the Benefits of Including a Revocable Trust in Your Estate Plan?
Before we can talk about the benefits of using a revocable trust for estate planning purposes, we first need to talk about what a revocable trust is (and what it isn’t). So, what is a revocable trust?
A revocable trust is a formal arrangement that is used to manage the ownership of a person’s (or couple’s) property. When you establish a revocable trust during the estate planning process, you will specify the assets that will be placed into the trust—whether now or in the future—and you will also specify how the trust will be managed both during your lifetime and after your passing.
With this very brief introduction in mind, some of the key benefits of including a revocable trust in your estate plan include:
- Flexibility – Revocable trusts offer significant flexibility both during and after the estate planning process. Not only can individuals and couples use revocable trusts to achieve their estate planning goals, but they can also make changes to their revocable trusts over time if necessary.
- Clear Guidance – Establishing a revocable trust provides clear guidance regarding the distribution of your assets after your death. It also provides clear guidance for who should manage your final affairs and what they can (and cannot) do as the representative of your estate.
- Custom-Tailored Terms – When you distribute your assets through a revocable trust, you can use custom-tailored terms to achieve specific estate planning goals. For example, if you have young children, you can provide for your assets to be professionally managed until your children reach an age of your choosing, and you can decide whether your children should receive a single lump sum or receive distributions over time.
- Avoiding Probate – Assets transferred through a revocable trust are not subject to probate. Probate is the process of administering a person’s final affairs in the New Jersey court system, and it is generally both more expensive and more time-consuming than distributing assets according to a revocable trust.
- Minimal Burdens for Your Family – From avoiding probate to avoiding potential tax liability, distributing your assets through a revocable trust can help minimize any future burdens for your family. For many people, this is what matters most.
That said, establishing a revocable trust may not be right for everyone. When developing an estate plan, it is important to make informed decisions based on your individual circumstances. After speaking with you about your estate, your family circumstances, and your long-term wants and needs, your Trenton estate planning attorney will be able to assess whether forming a revocable trust is the right choice for you.
Is a Revocable Trust a Substitute for a Will?
While a revocable trust serves many of the same purposes as a will (and does so while avoiding probate), a revocable trust is not a direct substitute for a will. As a result, if you choose to include a revocable trust in your estate plan, you will still need a will as well.
It is critical to ensure that your will and your revocable trust work together. If your will and your revocable trust conflict, it can leave your loved ones with more questions than answers. An experienced Trenton estate planning attorney will be able to help ensure that this is not an issue for you and your family.
What Other Documents Should I Include In My Estate Plan?
Regardless of whether you choose to include a revocable trust in your estate plan, you may need to include a variety of other documents in your estate plan as well. In addition to a will, these other documents may include:
- Powers of Attorney – Powers of attorney allow you to appoint someone else to make important decisions on your behalf during your lifetime, should the need arise. For example, if you become incapacitated due to a serious accident or life-altering diagnosis, you may need someone to manage your finances and make important healthcare-related decisions that you are unable to make yourself.
- Healthcare Directives – Healthcare directives (also called advance directives and medical directives) provide specific guidance regarding your care in the event of incapacity. They are similar to powers of attorney in that they might never prove to be necessary—but, if they do prove to be necessary, having them in place will be essential.
- Irrevocable Trusts – While revocable trusts are commonly used for general estate planning purposes, irrevocable trusts are typically used to achieve specific estate planning goals. For example, if you want to leave money to charity or need to ensure that a loved one remains eligible for Medicaid, including an irrevocable trust in your estate plan could be a good option.
Here too, an experienced Trenton estate planning attorney can help you make informed decisions and prepare the specific documents you need. Once you put a comprehensive, custom-tailored estate plan in place, you can feel confident that your family has the guidance it needs for the future.
Schedule an Initial Consultation with a Trenton Estate Planning Attorney at Helmer, Conley & Kasselman, P.A.
Would you like to know more about incorporating an irrevocable trust into your estate plan? If so, we encourage you to schedule a confidential initial estate planning consultation at Helmer, Conley & Kasselman, P.A. To speak with an experienced Trenton estate planning attorney at a time that is convenient for you, give us a call at 877-435-6371 or tell us how we can help online today.
