November 12, 2013 by generationsprobate
When you pass on, the last will and testament you leave behind won’t immediately come into full effect just yet. It first goes through probate—which is the legal process of determining whether or not the will is valid—as well as resolving any liabilities you might have left behind via deducting from your assets. This can be a troublesome process, especially since it can cost a considerable amount of cash from the estate to accomplish it.
Fortunately, there’s a way to avoid costly probate procedures, and it’s through establishing a revocable living trust. This special trust is a flexible system that allows the grantor-creator to freely determine beneficiaries for as long as he’s capable. The trust also allows a named trustee to distribute assets among beneficiaries without court approval.
Basically, revocable living trusts can protect an estate from being subjected to probate court. It helps that grantors can gradually add to their trust, and even name themselves trustees while they’re still fit and of sound mind.
While all-encompassing and safe investment routes, revocable living trusts aren’t immune from creditors, costs for nursing home care, and estate taxes. It’s a small price, however, to ensure that beneficiaries receive their due while preventing any probate-related costs from interfering.