Key Facts to Know About Revocable Trusts
As you consider the creation of an estate plan, you may decide to create revocable trusts. Revocable trusts can do many different things to help you to protect your assets, but revocable trusts do not provide some of the protections associated with irrevocable trusts.
Before you decide that a revocable trust is the best option for you, you should strongly consider speaking with a Sharonville revocable trusts lawyer. Zimmer Law Firm has extensive experience providing comprehensive asset protection and estate planning assistance to clients.
We understand the different rules for trusts and can advise you on how best to use trusts to your advantage. Give us a call to speak with a member of our legal team as soon as possible so we can help you to put an effective estate plan in place and so we can assist with the creation of the types of trusts that you need to protect yourself and your heirs.
Facts to Know About Revocable Trusts
Revocable trusts, like other trusts, are created for the purposes of bifurcating the possession of assets from the actual ownership of those assets. When you create a revocable trust, you must fund the trust and transfer the ownership of property or assets to it. The trust becomes the legal owner. A trustee is named (usually you, initially) to manage the trust assets. The assets are managed for the benefit of the trust creator and beneficiaries, with the trustee having a fiduciary duty.
Before you decide to create and fund an irrevocable trust, it is important to do some research into what this kind of trust can actually do as well as into your other alternatives. For example, some of the key facts to be aware of about revocable trusts include the following:
- Revocable trusts can allow you to avoid probate. When you transfer property into a revocable trust, the property that the trust owns can be transferred to new owners outside of probate upon your death.
- Revocable trusts can be modified as needed. Revocable trusts can be changed as needed. Irrevocable trusts, on the other hand, either may not be modified at all or the ability to modify will be limited to changing the beneficiaries under certain circumstances.
- Revocable trusts can help protect property in case of incapacity. When you create a revocable trust, you’re usually the trustee but you also usually create a backup trustee. The backup trustee can immediately get authority to manage your money and the property owned by the trust in the event of incapacity. If you have property, investments, or a business which must be actively managed, this is very important.
- Revocable trusts do not help you to avoid estate tax. If your estate is above $5.45 million as of 2016, estate taxes can be assessed on the estate. Putting your property into a revocable trust is not going to prevent it from counting to determine how much your estate is worth. Other types of trusts, however, could shield some or all of your property from being considered taxable.
- Revocable trusts do not help you to shield your assets if you require Medicaid coverage. Medicaid is available to pay for nursing home coverage and to provide other medical benefits to people with few resources. Unfortunately, you could end up spending all of your money on a nursing home before becoming eligible for Medicaid coverage. Putting your property into an irrevocable trust isn’t going to prevent it from counting when determining if you can qualify for Medicaid, although other types of trusts can make sure the assets don’t count.
These are just some of the many things to be aware of when you consider the creation of revocable trusts. When you have decided that a revocable trust, or an irrevocable trust, should be created, you should get the help you need to ensure that the trust is legally valid and that you correctly structure the ownership of your property.
Getting Help from a Sharonville Revocable Trusts Lawyer
If you are ready to create trusts to protect your assets or if you are otherwise interested in the creation of a comprehensive estate plan, you should get legal help from an experienced attorney. A Sharonville revocable trusts lawyer at Zimmer Law Firm can provide you with invaluable assistance with creating the right type of trust to meet your needs.
To learn more about different options for trust creation, join us for a free seminar. You can also give us a call at 513.721.1513 to speak with an experienced attorney and get personalized advice on what types of trusts and other legal tools should be a part of your estate plan.