Maybe Revocable Trusts Are Not for Everyone
You know you are old if you have a bee in your bonnet about the 2012 film version of The Lorax. Just looking at the title character’s CGI animated fur makes you itch, and the book’s original rhymes get drawn out into over an hour of unrhymed, mostly pointless dialogue. The 1972 animated TV special, which came out when the book was still hot off the press and when Earth Day celebrations were in their infancy, is, by contrast, 24 minutes of pure bliss. In the cartoon, as in the book, the Once-ler’s long fingers convey untold pathos, even though his face is never seen, and who can forget the song about all the uses for a Thneed? If you are old enough to remember this, you have no excuse not to write your estate plan. At your age, you have probably bought plenty of real-life Thneeds that did not live up to the marketing hype you don’t need one, you are probably right.
The Wrong Reasons to Set Up a Revocable Trust
Trusts are non-probate assets, which means that, when you die, the trust and its assets do not become part of your estate. People set up trusts to prevent inheritance disputes; stepmother and stepdaughter do not have to face off in probate court, because each gets her inheritance through a separate trust. You can also establish a trust to make assets inaccessible to creditors who will likely claim them from your estate during probate.
It is a good idea to establish a trust to pay for your grandchildren’s education or to financially support a disabled family member without jeopardizing his or her eligibility for government benefits. If you are just trying to reduce the value of your estate, though, you can do it without a trust. Furthermore, if you are trying to distance yourself from your property in order to avoid paying taxes while you are alive, a revocable trust will not accomplish that goal. The assets in a revocable trust legally belong to the grantor, and are taxable as such, as long as the grantor is alive.
If Not a Revocable Trust, Then What?
There are plenty of other ways to pass property to your heirs outside of probate. For example, anything you jointly own with your spouse does not go through probate when one spouse dies. You can designate a family member as a transfer on death beneficiary of a bank account. Finally, cash gifts are even more fun if you give them when you are alive, because you get to see the beneficiary enjoy them, or enjoy peace of mind by keeping them in the bank.
Contact a Florida Estate Planning Attorney About Probate Cases
A probate attorney can help you establish a revocable trust or live without one. Contact The Law Office of Laurie R. Chane in Dade City, Florida to discuss your case.
Source:
msn.com/en-us/money/other/four-reasons-you-don-t-need-a-revocable-trust/ar-AA1gHQU6?ocid=msedgntp&pc=ACTS&cvid=397d97c93a0a494eb773623ab853cc93&ei=38
