Legal

How A Revocable Trust Benefits You and Your Family

By Libby Banks, The Law Office of Libby Banks, PLLC

The Revocable Living Trust is the foundation for most estate plans prepared in my office. The trust reduces expenses and provides for a smoother administration of your estate. It not only avoids the time and expense of a probate action at your death, but it also avoids court proceedings if you are incapacitated.

I like to think of your Trust as your treasure chest. The assets you worked and saved to accumulate go into your Trust. While you are alive and able, you are taking care of the treasure chest as the trustee, and you are the only beneficiary of the assets. If you can’t take care of your treasures (manage your finances), either because of your death or because you are incapacitated, you have named a successor trustee to step in to take over managing the assets.

How do we put things in the Trust? We title your home, bank account, brokerage account and other assets in your name as trustee rather than in your individual name as owner.

For instance, for the home of a husband and wife (we’ll call them John and Ann Smith), we prepare, sign, and record a deed to the house. In the deed John Smith and Ann Smith, husband and wife, convey their house to John Smith and Ann Smith, Trustees of the John and Ann Smith Trust. The same thing happens with your financial accounts. Once your Trust is in place, you continue as always to be the manager of your financial affairs. You manage your assets, receive the income, write checks, make deposits, pay bills, and buy and sell property. You have full control.

But if you can no longer manage your financial affairs, either because of death or incapacity, your Trust contains the instructions for who is in charge – the designation of your successor trustee. The Trust tells the successor trustee how they are to manage the trust assets and distribute money for your benefit if you are incapacitated. The Trust also contains your instructions for administering your assets and distributing them to your beneficiaries at death.

My clients notice very little difference in how they handle their finances once they have the Trust in place and their assets titled in their names as trustees. However, when a client has become incapacitated or passed away, their designated successor trustee certainly notices the difference. The trust results in a much easier transition for them to take care of financial affairs for the incapacitated person, and to manage and distribute the assets after death.

If you have questions about whether a trust is right for you, I offer a free initial consultation to discuss your specific situation and what would work best for you. To book your appointment, call my office at 602-375-6752. Visit our website for more information on trusts and other estate planning at libbybanks.com.

Call us today to schedule your FREE Estate Planning Consultation

Our Estate Planning in Phoenix and Scottsdale is highly customized to meet your unique family situation, assets, values, and personal goals. Our complimentary first meeting allows you to get to know Libby, our Estate Planning attorney and talk about your unique situation and what plan will best fit your needs.

Remember, when you choose Libby you are not only hiring someone to prepare your Estate Plan, you are choosing a seasoned Estate Planning attorney to guide you through this often complex process and raise questions you might not have considered. You are choosing an experienced professional to create a plan that serves your family in the way that you want and, after you are gone, a trusted advisor that your loved ones can depend on.

Come see us in our new, convenient office located just down the street at 5010 E. Shea Blvd, Suite 205 Scottsdale, AZ 85254 602.375.6752 | www.libbybanks.com | libby@libbybanks.com

Kelly Ross, Agent 7704 E Doubletree Ranch Rd, Ste 150 Scottsdale, AZ 85258 Bus: 480-841-9000 www.insuringthevalley.com

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