Many people believe that Trusts are only for the wealthy, but this couldn’t be further from the truth. In fact, Trusts can be an extremely helpful estate planning tool for individuals at all income levels. No matter your financial class, Trusts offer a variety of benefits, including privacy, flexibility, and the ability to provide for your family and loved ones after your death.
Revocable Living Trusts in Maryland
One example of a Trust is a Revocable Living Trust. This type of Trust is a popular option for many individuals who want to avoid probate and provide for their loved ones after they pass away.
A Revocable Living Trust is a legal document that allows you to transfer ownership of your assets to a trust during your lifetime. You can name yourself the trustee and maintain control over the assets while alive, but after you pass away, the assets in the Trust will be distributed to your beneficiaries according to the instructions you provided.
Benefits of Revocable Living Trusts
As we briefly mentioned above, one of the many benefits of a Revocable Living Trust is that it can help you avoid probate. Probate is the court-supervised process of distributing your assets after you pass away. It can be a lengthy and expensive process, and not to mention your assets become a matter of public record. Using a Revocable Living Trust, you can transfer ownership of your assets to the Trust and avoid the probate process entirely. This can save your loved ones plenty of time, money, and stress during what is likely already a difficult time for them following your passing.
Another benefit of a Revocable Living Trust is that it can provide for your loved ones after you pass away. You can name your beneficiaries in the Trust document and provide instructions for distributing your assets. For instance, you may choose to set up a Trust for your children and specify in the document that they should receive a certain amount of money each year for a certain period of time. This can provide for your children’s needs while ensuring the assets remain protected and not squandered.
Last but not least, a Revocable Living Trust can help you maintain privacy. Unlike a Living Will, which becomes a matter of public record when it is probated, a Trust remains private. This means that your financial affairs will not become public knowledge, which can be incredibly important to those who value their privacy.
Call Annapolis Estate Planning Attorney Raymond E. Brown Today
As you can see, Trusts are not solely reserved for the wealthy. And while we’re at it, they are not just for older individuals, either. Creating a Trust can be an extremely beneficial tool for anyone at any income level and any age. If you are considering creating a Trust or if you simply want to know more about it, talk to an experienced Annapolis estate planning attorney at The Law Office of Raymond E. Brown today.