The word trust may make you think first of a tax cut. It is true that trusts can save taxes in many situations, but trusts have other advantages, too. For example, one type of trust you may have heard something about a Revocable Living Trust can be very useful.
A Revocable Living Trust is where the trustee has a legal responsibility to manage assets for you, or for you and your spouse. That is what you have been doing all your adult life, of course. So, using a trustee as your substitute may seem puzzling. Why would you want to do it?
Here are three good reasons.
Your trustee will care for your assets, monitoring your investments and deciding on portfolio changes within the guidelines and objectives you have set. With your trustee caring for your financial assets, you will protect your finances from disruption if an accident, stroke, or long term illness affects your ability to manage them.
The choice of trustee is the key to the success of any trust. Almost anyone can be a trustee, but if you make an unbiased professional the trustee, you can be sure your investments, plus any other assets you place in your trust, will receive skillful management.
A second reason for considering a Revocable Living Trust is the help it can provide for the future settlement of your estate. On your death, you can have your retirement plan assets, life insurance, and other assets transferred to your trustee.
The third reason for a Revocable Living Trust is the freedom you retain to make changes as your family or financial situation shifts. Except in instances of legal incapacity, you are always able to amend or terminate your Revocable Living Trust. You can also change your trust's beneficiaries, withdraw or add assets, and change trustees or the trustees responsibilities.
We would be happy to explain more about a Revocable Living Trusts asset management and estate settlement advantages. Please contact us at 866.238.0082.