What is the Purpose of a Revocable Living Trust?
In Georgia, creating one or more trusts is something that many people consider in estate planning. There are many different types of trusts that a person can establish in Georgia with different purposes, as well as their own benefits and limitations. All trusts in Georgia are either revocable (meaning the person who makes the trust can amend or cancel it) or irrevocable (meaning that the terms of the trust cannot be changed once it is made, and the trust cannot be canceled). A revocable living trust is a popular component of many estate plans, and it can be beneficial to Gwinnett County residents in many different ways.
What is the purpose of a revocable living trust, and should you consider creating one? Our Gwinnett County estate planning lawyer can tell you more about revocable living trusts more broadly, and we can speak with you about creating one as part of your individual estate plan.
What is a Revocable Living Trust?
A revocable living trust, sometimes known as an inter vivos trust, is a type of trust that you create during your lifetime and for which you maintain the ability to alter or cancel the trust altogether.
As with any other type of trust, a revocable living trust is a legal arrangement in which a party who makes the trust (known as the settlor, or the trustor) places assets to be managed by a trustee (who can also be the settlor in a revocable living trust). The settlor can also name a successor trustee who can continue to manage the assets in the event of the settlor’s own incapacity, and the settlor can also name beneficiaries who will receive the assets in the trust after the settlor’s death.
What is the Purpose of a Revocable Living Trust?
There are many different benefits to creating a revocable living trust in Georgia. The following are some of the most common reasons that people create revocable living trusts as part of their Norcross estate plans:
- Allows your beneficiaries to avoid probate (assets in a trust do not need to go through the probate process and can be distributed quickly and more easily to beneficiaries, unlike the assets left to your loved ones through a will);
- Allows you to leave assets that will not be made public (while probate proceedings are public record, distributions through a trust are not, which means you can leave assets to specific beneficiaries privately); and
- Allows you to do both of the above while still maintaining control of the assets yourself, since you can serve as the trustee of your own revocable living trust in Georgia and can amend the terms if necessary.
Contact a Norcross Estate Planning Attorney
Revocable trusts are a common component of estate plans throughout Georgia, and they can benefit Gwinnett County residents in various ways, as we have discussed above. If you want to find out more about creating a revocable living trust, or if you have questions about estate planning more generally, our firm is here to assist you. An experienced Norcross estate planning lawyer at Bowman Law Firm can answer any questions about estate planning you have today and can begin working with you to consider the best way to create an estate plan that fits your needs.
Source:
law.justia.com/codes/georgia/title-53/
