Revocable living trust lawyer McKinney

As a lawyer specializing in estate planning in McKinney, Texas, Janelle Cremé has supported numerous clients in creating effective estate plans that safeguard their assets and provide for their loved ones. One essential estate planning instrument that Janelle suggests to her clients is a revocable living trust. In this article, we will explore what a revocable living trust is, how it functions, and why it can be a valuable addition to your estate plan.

What is a Modifiable Living Trust?

A modifiable living trust is a legal document that allows you to shift your assets into a trust during your lifetime. You can function as the trustee of the trust and maintain control over your assets, but the trust itself owns the assets. You can designate a successor trustee to take over management of the trust assets if you become incapacitated or pass away.

How Does a Modifiable Living Trust Work?

When you generate a modifiable living trust, you transfer ownership of your assets into the trust. This can include properties, investments, bank accounts, and personal property. You can continue to utilize and enjoy these assets just as you did before, but now they are owned by the trust.

As the trustee of the trust, you have complete control over the assets. You can purchase and sell assets, make investments, and use the assets for your own benefit. If you become incapacitated, your successor trustee can take over management of the trust assets without the need for a court-appointed guardian or conservator.

When you pass away, the assets in the trust are allocated according to your desires, as outlined in the trust document. This can include providing for your spouse, children, grandchildren, or any other beneficiaries you choose. Because the assets are held in the trust, they can avoid the probate process, which can be time-consuming, costly, and public.

Why Select a Modifiable Living Trust?

There are several benefits to selecting a modifiable living trust as part of your estate plan:

Avoiding Probate: Assets held in a modifiable living trust can pass to your beneficiaries without going through the probate process. This can save time, money, and provide more privacy.

Asset Protection: A modifiable living trust can provide protection for your assets during your lifetime and after your passing. For example, if you have a beneficiary who is not yet financially responsible, you can provide for them in the trust while still protecting the assets from their creditors or potential lawsuits.

Flexibility: A modifiable living trust is a flexible estate planning tool. You can alter or revoke the trust at any time during your lifetime, making it an excellent option for those who want to maintain control over their assets.

Incapacity Planning: A modifiable living trust can provide for your care if you become incapacitated. You can designate a successor trustee to take over management of the trust assets if you are no longer able to do so.

Tax Planning: A modifiable living trust can be designed to minimize estate and gift taxes, providing a valuable tax planning tool.

Conclusion

As an estate planning attorney in McKinney, Texas, Janelle Cremé has observed firsthand the benefits of using a modifiable living trust as part of a comprehensive estate plan. If you are considering creating an estate plan or want to review your current plan, contact Janelle Cremé today to discuss your options and ensure that your wishes are carried out.