Is A Revocable Trust Right For You?

Although not everyone needs a trust, a trust is a useful estate planning tool and should be considered. Below are the benefits of a trust.

Privacy

A trust is private and confidential. Unlike a will, a trust is not filed with the court. When an estate is opened, your will gets filed with the court. Additionally, your entire estate and assets are inventoried and reported to the court. The public has access to your estate documents, the value of the estate and how it was distributed. A trust, on the other hand, is completely private. It is not a public document, and only the trustee and the beneficiaries are entitled to information about the trust.

Adaptable

A trust is a living document, especially a revocable trust. You, as the trustee, may modify and change your trust as your circumstances change. You have the right to amend or terminate a revocable trust at any time.

Provides Greater Control Of Your Assets After Death

Unlike a will, which has certain limitations, you can control your assets, even after death. A trust gives you the ability to direct how your assets are used and to whom they are distributed for as long as you direct. You can put conditions on distributions, and you can direct that property and money held in trust only be used in certain ways and for certain purposes.

Avoid Probate

Having a trust avoids probate, as it is not filed with the court, and if all your assets are held in trust, there would be no estate or probate. Nevertheless, you still need a will to ensure that any other property held in your name is added to the trust and distributed according to the trust documents. This is commonly referenced to as a “pour-over will.”

Immediate Access To Funds

When a person dies and their assets are held in a trust, the trustee (or successor trustee if the decedent was the trustee) may make immediate distribution of the trust assets in accordance with the trust document. If assets are passing through a will and going through probate in Maryland, the estate may not make distribution for at least six months and, only then, upon approval of the court.

Caution: A trust is only affective if it is property funded, which means that all property must be transferred to the trust. Your attorney should assist you with transferring assets to the trust or, alternatively, provide detailed instructions on how to do so, in order to ensure that your goals are accomplished.

For more information or to discuss your specific needs and to protect your family for the future, contact Tara K. Frame at Frame & Frame at 410-255-0373, or visit 8562 Fort Smallwood Road in Pasadena or www.frameandframelaw.com.