You may not think about it now, but you will need to make some decisions about how you plan to manage your estate one day. Legal and financial advisors recommend that everyone have a plan for their future. There are many different ways to plan your estate; the best practices are those that work for you. One of the most common plans is a revocable living trust. For more information on this type of planning, read this article on three facts all millennials need to know about estate planning.
What is a Revocable Living Trust?
A living trust is a legal device that allows you to control your assets during life, even if you are incapacitated. It’s an agreement between the person agreeing (the trustee) and at least one other person (the beneficiary). The trustee is generally your spouse, another family member, or a trusted friend. The goal is to keep control over your money and property during life. If you don’t have a living trust, someone appointed by the court will manage it for you. Creating this type of trust allows the trustee to distribute any items according to their preference instead of following state law. A revocable living trust can be changed as needed without having to go through the formalities of court proceedings.
Why Should You Have a Plan for Your Estate?
You may not think about it now, but one day you will need to make some decisions about how you plan to manage your estate. Legal and financial advisors recommend that everyone have a plan for their future. Additionally, you never know when an accident or hazard may occur. Fires in commercial properties cost owners over 2.4 billion dollars per year. It would be wise to have a plan in place if these incidents occur.
How Does a Revocable Living Trust Work?
A revocable living trust is a type of estate planning. These trusts are often chosen by people who want to avoid probate because it allows for a person’s assets to transfer directly from their hands into the hands of their beneficiaries.
A revocable living trust also has flexibility because it can be changed or revoked anytime during your lifetime. In this way, you can make changes as your life changes without going through the probate process. When you die, your trustee will carry out your wishes from the document and distribute your assets as you have specified. But if you have further questions about estate planning, then you may consider consulting a probate expert who has completed a Probate Training Program.
The Benefits of Planning Your Estate
Estate planning is essential for everyone. The more you know, the better prepared you will be. Your family might find themselves in difficult financial situations with an unclear path without a plan. It is recommended that you update your estate plan once every five years. This may not be a priority for you now, but it will be something you need to face before long. Consult with an estate planning lawyer to learn the best practices for estate planning and if there are any recent changes to estate law.
Over 3,500 pieces of legislation are produced each day, making it difficult to stay up to date on legislation surrounding estate planning. Consult with a professional about your lifestyle, goals, and how you may protect yourself.
Take Action Today
A revocable living trust is just one of the tools you can use to plan your estate. There are many other tools that you can use to plan your estate. A trust can be used to avoid probate or protect your assets if you have children with special needs. A trust can also be used to protect your children’s inheritance. Family members may ask for help from real estate agents or inherited house buyers if they have plans on selling their inheritance. Signing up on one of top financial advisor coaching programs can help you gain some clarity on your goals.
Millennials should start planning for their estates now. Your future self will thank you!
