A revocable living trust is one that has provisions that can be changed or amended upon the grantor’s request. You create it during your lifetime and add or remove assets so long as you have the capacity to make decisions for yourself. In the event you’re incapacitated, there’s a successor trustee already in place to act in your best interests.
So why create a revocable trust?
1. Avoidance of probate
Probate is the legal process of validating a will. A trust saves you this hassle, making your assets readily available to benefit your beneficiaries. Further, it helps you avoid multiple probate proceedings if you own real estate in different jurisdictions.
2. Continuity of management during incapacitation
The process of appointing a guardian/conservator if you get incapacitated can be lengthy and expensive while also holding up your assets in court. Furthermore, the court will continue to be involved in a supervisory capacity, resulting in extra fees. With a trust, all the court needs are the trust document and a written acceptance by the successor.
3. Privacy
The probate process is a matter of public record in New York. Therefore, all the information concerning asset categories and their beneficiaries is available to the public. With a trust, even in cases that require the court’s involvement, the trust document is shown to the court clerk but stays out of public record.
The circumstances under which a living trust is invoked are often difficult ones for the individual and their family. Getting your affairs in order before disaster strikes saves your family the trouble of having to worry about it and ensures they’re taken care of even in your absence.
