A Revocable Living Trust is one of the most powerful estate planning tools available to Alabama families. A properly drafted and funded trust can help your loved ones avoid probate, maintain privacy, provide for management of assets during incapacity, and simplify the administration of your estate after death.
What Is a Revocable Living Trust?
A Revocable Living Trust is a legal document that allows you to transfer ownership of your assets into a trust during your lifetime while maintaining complete control over those assets. As the Trustmaker and Trustee, you continue to manage your property just as you do today. Because the trust is revocable, you may amend or revoke it at any time while you have capacity.
Upon your death or incapacity, your Successor Trustee can step in and manage or distribute trust assets according to your instructions without the delays and expense of probate.
Benefits of a Revocable Living Trust
Avoid Probate
Assets properly titled in the name of your trust generally pass outside of probate court, saving time and reducing administrative burdens on your family.
Plan for Incapacity
If you become unable to manage your affairs, your Successor Trustee can continue managing trust assets without the need for a court-appointed conservator.
Maintain Privacy
Unlike probate proceedings, trusts generally remain private and are not filed with the probate court.
Provide Asset Management
Trusts can be customized to provide asset management for children, beneficiaries with special needs, blended families, or beneficiaries who may need assistance managing inheritances.
What Assets Should Be Placed in a Trust?
Common trust assets include:
- Real estate
- Bank accounts
- Non-retirement investment accounts
- Business interests
- Personal property
Certain assets, such as retirement accounts and life insurance policies, often pass through beneficiary designations and may require separate planning.
What Is Trust Funding?
Creating a trust is only the first step. Assets must be properly transferred into the trust through deeds, account retitling, assignments, or beneficiary designations. This process is known as trust funding.
At King & King, Attorneys at Law, we assist clients with both the preparation and funding of their trusts.
Is a Revocable Living Trust Right for Me?
A trust may be appropriate if you:
- Own real estate
- Want to avoid probate
- Have children or grandchildren
- Desire privacy in estate administration
- Want a plan for incapacity
- Own a business
- Have a blended family
Our attorneys can help determine whether a trust-based estate plan is appropriate for your family’s goals.
