Many people tend to involve revocable living trust in their estate plans instead of using just a will to make decisions for them. A revocable living trust is beneficial as they help eliminate the prolonged procedure of probate. It is used in providing to spouses without disinheritance of children. Such an issue is generally observed in second marriages. They help save money on estate taxes and protect inheritances for children and grandchildren. Furthermore, they help protect money from creditors, spouses, and irresponsible beneficiaries. If you are unsure about the process of funding a trust, consult a Honolulu estate planning lawyer to get the required legal guidance for your case.
Funding trust -an overview
Trust is extremely advantageous. However, they must be used in the correct manner so that you do not waste any complications. Not funding the trust can lead to problems, and you may have to face probate court.
Funding a trust refers to the transfer of assets into the Trust. To fund the trust, you must modify the titles of your asset so that they are not under your name or your name if it is co-owned by your spouse. It is necessary to change them, so they are under your trust’s name.
You are responsible for deciding who controls your assets kept in the trust. You can designate yourself as a trustee for your trust and its caretaking. You must also decide on a successor trustee who will be responsible for your trust if you die. This helps ensure that your wishes and desires are followed at your death. You can designate yourself as the trustee. It is allowed in a revocable living trust.
Along with that, you are allowed to purchase and sell assets just like before. In a revocable trust, you can make any modifications and changes depending on the requirements. You can also withdraw assets from the trust if you need them.
Importance of funding the trust
Protection can be provided to your assets if they are kept in the trust. It can be done through the process of funding and adding the assets under the name of the trust. After the establishment of a living trust, there is no requirement to make you will not be allowed to make any changes after establishing a living trust. If something happens to you, you will be required to undergo the process of probate the trust is in direct control of the assets kept in it.