These days, knowing that property and assets are secured and taken care of can provide much-needed peace of mind. Estate planning is often thought of as something only wealthy families partake in. However, every Michigan family should have a plan in place for the future, regardless of income level. Trusts are a great way to protect and secure assets. A revocable trust, in particular, has numerous advantages.
Revocable trusts are also known as revocable living trusts. A big benefit to a revocable trust is that it is amendable, the provisions can be changed or even cancelled at any time. Due to their flexibility, revocable trusts are great for younger individuals. However, one thing to note is that a revocable trust becomes irrevocable once the trustmaker dies, since the trustmaker no longer has the ability to amend the trust.
Possibly the biggest benefit to a revocable trust is the ability to avoid probate. Probate is a lengthy and expensive court proceeding to determine the distribution of assets. One downside to a revocable trust is that it can sometimes take a lot of work upfront to get assets moved into the trust. For some items, all the trustmaker needs to do is list them out. However, other assets may require the involvement of transfer agents, banks or insurance companies.
Also, the rules and legalities surrounding revocable trusts can be confusing and will vary from state to state. Families in Michigan who have questions about trusts, wills or any aspect of estate planning may want to consider consulting a legal representative. A seasoned attorney can provide legal guidance and help families create the best plan to secure their futures and fit financial needs.
