Our McKinney Revocable Trust Lawyer Can Help You Manage Your Estate
A Will is a document a person executes while they are alive so that when they die, their belongings will be distributed to the persons or entities of their choosing. While a Will is an effective estate planning tool, it does have its disadvantages. Many of these disadvantages are not found in revocable trusts, another legal vehicle frequently utilized in estate planning. Our McKinney revocable trust lawyer explains what to know about this estate planning option.
What is a Revocable Trust?
A revocable trust, also sometimes called a revocable living trust, is a legal entity formed by a person (known as the trustor) during their lifetime. The trustor also appoints a trustee to administer the trust and names beneficiaries, who are the people (or entities) who will receive the trust’s assets. Sometimes, the same person serves in more than one role. For example, the trustor can also be the trustee. Since it is revocable, the trustor retains the ability to change the trust’s terms or terminate the trust altogether.
3 Ways a Revocable Trust Outshines a Will
Revocable trusts have distinctive features that make them a better choice than a Will in many situations. This includes:
Probate is the process the deceased person’s estate must go through. During probate, debts and assets of the estate are identified, and the debts are settled. The remaining assets are then ascertained and distributed to the decedent’s beneficiaries. If the decedent dies with a Will, it will be used to determine how the estate is distributed. If the decedent died without a Will, their estate would be distributed according to the intestacy rules in Texas. Either way, the probate process is tedious and lasts months, even in the best scenarios. Also, while the estate is being probated, the decedent’s assets may be tied up.
However, if the deceased placed their assets in a revocable trust prior to passing away, those assets may be distributed to the beneficiaries without going through the probate process. This saves time and money.
When someone dies with a Will, the Will is made public record. Revocable trusts, however, are private and not made public. This is particularly beneficial to people who desire to keep their assets and to who they decided to give their assets, a private matter.
Many parents and grandparents want to provide for their children and grandchildren but do not want to allow them access to large sums of money at too early an age. A revocable trust allows them to set parameters regarding who gets what amount and what age they will receive it.
Speak with a McKinney Revocable Trust Lawyer
It’s hard to know whether you need a Will, a revocable trust, or both without the help of a McKinney revocable trust lawyer. At the Nordhaus Firm, our team of legal professionals will meet with you, and after learning about you and your long-term goals, we will help you craft an estate plan that meets your needs. You may reach us by calling 214-726-1450 or via our contact page.