Legally Speaking CN
Why Do Young Families Need A Revocable Trust?
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By Alan J. Reinfeld, Esq.
I
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n today’s society, it is important to plan for the
future of your family. Every day, tragedy happens, from car accidents to people being diagnosed with cancer. It is important that there are plans to take care of your family in case the unexpected happens. Take me for example: my mother passed away from cancer in about four weeks, but because we had a trust I was able to focus more on her and healing then on the financial matters. A revocable trust is a legal document that creates a plan of distribution of a person’s assets. A person sets up a revocable trust, i.e., a “living trust,” during his or her lifetime, which becomes irrevocable upon their death. This means that the person has the power to amend or revoke the trust only during his or her lifetime. During the person’s life, the beneficiaries may include the person him/herself, his or her spouse, children or other close relatives. Once the person passes away, the property that is titled to the trust is distributed pursuant to the terms of the trust. What are the benefits of having a revocable trust? ▸▸ Quick transfer of assets. A properly drafted revocable trust can help the decedent’s family avoid the time-consuming probate process. The person must re-title his or her assets into the trust; this is called “funding” the trust. If assets are not transferred to the trust prior to the person’s death, the only way to transfer any assets to the trust will be through probate. ▸▸ Avoid Probate. At a minimum, probate administration will take over six months. The administration usually costs a minimum of $500 and many times can cost more based on the complexity. There may be other fees and costs associated with administration.
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▸▸ Privacy. A revocable trust is a private document that does not require filing with the court. A will, however, is a public document that must be deposited with the court after the decedent’s death. ▸▸ Trust assets are not subject to creditors. Assets properly put into a revocable trust are not subject to most creditors. When a probate administration is opened, creditors may try to claim the money owed to them by filing a claim on the probate assets. ▸▸ Focus on mourning. Avoiding probate and quickly wrapping up the affairs of the deceased helps focus on mourning rather than probate administration. ▸▸ Name a person who will handle your affairs. A revocable trust along with a proper will allows a person to designate who will handle their affairs once they pass away. ▸▸ Reduction of estate taxes. While a trust is not a tax savings tool, there may be some provisions included in the trust that allows you to transfer your wealth by establishing a credit shelter trust in the event of death. The Law Offices of Reinfeld & Cabrera, P.A has offices in both Coral Springs and Plantation. Reinfeld & Cabrera, P.A is a full-service law firm specializing in a variety of fields such as Probate, Estate Planning, Car Accidents, Community Association Law, Divorce, Employment Law, Evictions/Landlord Tenant, Foreclosure Defense, Business Law,Personal Injury, Product Liability, Real Estate, Traffic Tickets, Workers Compensation, and Wrongful Death. Our attorneys and staff seek to provide the upmost service to our clients, while maintaining an effective cost containment strategy. The firm can be reached at 1-855-LAWS 123 or www.MyPersonalAttorneys.com.
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