Add light in the Revocable Living Trust

Aug 6th, 2022
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How to add light in the Revocable Living Trust

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okay so in this video were going to talk about ten provisions every revocable living trust should have so Im Paul Rabalais Im an estate planning attorney every morning at 10 a.m. Central time check in to this YouTube channel where Im going to give you another educational video that will help you protect what you have for yourself and your family all right I want to give you a little bit of introduction to this topic and then jump in to the ten necessary provisions okay when people get their legal affairs in order they do several different things yes they they provide for where their stuff will go when they die how they want to leave it to their spouse if theyre married to their children if they have children or grandchildren to others and that all is very necessary and very appropriate appropriate in addition to designating you know how things are to be distributed when when you pass away many people also want to simplify or streamline that process of getting their estate settled

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Avoiding Probate: One of the primary advantages of a revocable living trust is that it can help to avoid the probate process, which can be lengthy, costly, and public. Assets in the trust can pass to beneficiaries without the need for court intervention.
A living trust can help you manage and pass on a variety of assets. However, there are a few asset types that generally shouldnt go in a living trust, including retirement accounts, health savings accounts, life insurance policies, UTMA or UGMA accounts and vehicles.
Many with revocable trusts choose to include a spendthrift clause and do so with good reason. A spendthrift clause can provide a strong layer of protection between trust beneficiary creditors and trust beneficiaries themselves.
Revocable trusts let the living grantor change instructions, remove assets, or terminate the trust. Irrevocable trusts cannot be changed; assets placed inside them cannot be removed by anyone for any reason. Revocable trusts allow beneficiaries to avoid probate court and guardianship or conservatorship proceedings.
Revocable trusts, like assets held outside a trust, do get a step up in basis so that any gains are based on the assets value when the grantor dies.
The biggest downsides of a revocable trust include the following: Your trust assets arent protected from creditors. You may not qualify for needs-based Medicaid coverage for a nursing home because the assets held in trust are still counted as resources when determining benefits eligibility.
The three most common types of trusts are: living, revocable, and irrevocable. A living trust is one thats created while youre still alive and can be revocable or irrevocable. A revocable living trust can be changed while youre still alive. An irrevocable living trust cant be changed after its created.

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