Advantages of a Revocable Trust In Minnesota

by Flanders Law Firm LLC on November 29, 2017

Advantages of a Revocable Trust in MinnesotaAdvantages of a Revocable Trust

As we mentioned last week, talk of trust funds can lead to lots of confusion. Even those interested in learning more about estate planning can be overwhelmed when the topic of conversation turns to trusts. These tools are often viewed as confusingly complex and only for those with money to spare. This is characterization is, thankfully, untrue and to help demystify the world of trusts, I intend to spend some time exploring one popular variety in a bit more detail. Specifically, lets discuss revocable trusts.

What is a revocable trust?

As weve discussed previously, a revocable trust is a specific kind of trust fund that is created during someones life and can then be altered or revoked by that person at any time. The person who creates the revocable trust is known as the grantor and, unlike irremovable trusts, the grantor retains the power to control not only the trust, but also the property included within the trust. During the grantors lifetime, the money earned by the trust is distributed to the grantor and only after his or her death does the property transfer to other beneficiaries.

Advantages

One of the biggest advantages to creating a revocable trust is that it allows you to avoid the probate process. The revocable trust allows your loved ones to take control of your property without the need for court intervention. This can be especially useful when you own property in another state. In the event of your death, then your family members would need to conduct separate probate proceedings to take control of your property, a process that would waste valuable time and money. Similarly, a revocable trust allows your family members immediate access to your assets, including money, in the event that something happens to you. No need to go through probate, they will be able to gain immediate access to money in what will likely be a very difficult time.

Another plus of a revocable trust is that it can be used to avoid the need for guardianship or conservatorship. After creating a revocable trust, in the event something happens and you become incapacitated, the trust can be set up to pass into the control of someone else who will be able to direct what happens to the trust assets (meaning, your property) without needing to seek permission from a probate judge. This saves time and money, as incapacity can occasionally lead to long stretches of guardianship.

Revocable trusts are also useful in keeping private matters private. Rather than having your affairs labeled a public record by going through the probate process, trust documents are not filed with a court. No filing, no public record for others to see.

Take Stock of You Money

A final benefit of revocable trusts is that they are a great way to force people to take stock of their estate and start making decisions. All too often people fail to inventory the property theyve acquired over a lifetime and assume the distribution process will be simple. By thinking through these things now, which is required when establishing the revocable trust, you are forced to face the issue head on and begin giving serious thought to how you want your estate handled when youre no longer around. Revocable trusts are great ways to do this, rather than being written in stone, you have time to think and make amendments down the road, revising as your views shift as you age and circumstances change.

Minnesota Estate Planning Lawyers

An experienced Minnesota estate planning lawyer can help walk you through the probate process, answering questions along the way. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at(612) 424-0398.

Source: “Revocable Trusts,” published at AmericanBar.org.

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Should You Consider a Revocable Trust? | MN Estate Planning Law

by Flanders Law Firm LLC on November 27, 2017

Minnesota Revocable TrustWhy Should You Consider A Revocable Trust?

We’ve done a few posts on revocable trusts already. In the first, we explained more about what a revocable trust was and how it worked. In the second, we talked about some of the most important benefits of a revocable trust. Now that you have a bit more background, let’s spend some time exploring why you should consider a revocable trust through a series of questions.

Do you have assets in more than one state?

One of the situations where revocable trusts are particularly useful is when a person owns assets in more than one state. The benefit to a revocable trust is that it avoids going through probate separately in each state where an asset is located. A good example would be a person with a primary residence in one state and a second home elsewhere. Rather than force your family members to go through the lengthy probate process twice, a revocable trust skips those steps entirely, passing your assets directly to your heirs.

Do you have a complex collection of assets?

Though revocable trusts are important even for those with simple asset structures, those with complicated collections of assets and property benefit even more. Rather than have your heirs go through the complicated process of dividing up investments such as artwork, stocks, bonds, real estate, bank accounts, etc., a revocable trust can manage everything all at the same time.

Do you want a plan to protect assets now and when you’re gone?

Wills are great ways to lay out plans for once you’re no longer around, but if you’re eager to make plans for today, consider a revocable trust. A revocable trust is created while you’re still alive and can be used in the event of a health crisis or incapacity. Rather than have someone appointed to manage your affairs, the revocable trust can continue operating smoothly. Because the trust is revocable, it can also be amended multiple times as life and circumstances change, giving the grantor tremendous flexibility.

Do you worry about protecting your heirs?

Revocable trusts are great ways to provide extra protection for your beneficiaries. Though you can leave assets to heirs through a will, you cannot use a will to protect these assets from the creditors of your beneficiaries. If something happens after you’ve passed away and your assets have been distributed and a creditor files a claim against a beneficiary, he or she may lose the asset you set aside for them. By creating a revocable trust, the asset is protected from these claims by creditors, ensuring that your beneficiaries, and not future creditors, are the ones who truly receive the benefits.

Do you want privacy?

If so, then a revocable trust is absolutely something you should consider. Though a will is an important estate-planning document, it becomes public record once it is filed with the probate court. That means anyone can gain access to the will and some sensitive personal information. A revocable trust, on the other hand, is private and the terms do not need to be disclosed publicly, shielding you and your family from unwanted scrutiny.

Minnesota Revocable Trust Attorneys

An experienced Minnesota estate planning lawyer can help walk you through the probate process, answering questions along the way. For more information on estate planning in Minnesota, along with a variety of other topics, contact Joseph M. Flanders of Flanders Law Firm at (612) 424-0398.

Source: Revocable Trusts,” published at AmericanBar.org.

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