What is a Revocable Living Trust?
Revocable Living Trusts, or more commonly called an estate plan is used to allow you to designate someone you trust to manage your affairs by following your specific written instructions.
A well drafted estate plan can minimize or avoid estate taxes, income taxes and capital gain taxes.
Most often, people equate estate planning with death, but what happens if you become incapacitated or disabled?
A proper estate plan allows your estate to pass to beneficiaries without the lengthly and costly Hawaii probate process.
You Might ask yourself,
“I have a Will, Why do I need to do a revocable living trust?”
Have a Will and Revocable Living Trust:
- Allows you to select beneficiaries for your property
- Make decisions on which children will receive your property
- Revoke and change your wishes, in the legal documents at any time
Have a Revocable Living Trust, and No Will, My Options:
- My personal property will avoid probate
- The living trust may reduce the chance of a court dispute over estate
- Avoid an adult guardianship or conservatorship
- Keeps your estate plan documents private upon your passing
Have a Will, Not a Trust, My Options:
- Designate guardians for children
- Decide on managers for children’s property
- Elect an executor
- Choose how debts or taxes should be paid
If you fall into one of these categories, then we have listed several reasons why you should create an estate plan, and the benefits it provides for you and your loved ones.
Additional Reasons why you should create a Revocable Living Trust:
- On your death, an estate plan can protect inherited assets from lawsuits, divorce, creditors and other claims.
- Estate plans often include a “no-contest” provision. Such an election can discourage challenges to your estate plan, giving you additional assurances that our wishes will be honored.
- What happens if, after death your spouse gets remarried to some who already has children? By planning properly, you can protect your children’s inheritance while still providing for your spouse after your death. You will not have to worry that children or step-children from a later marriage will have a claim to your estate.
- Many individuals, especially those with limited financial experience, can make unwise decisions when given an inheritance. They often struggle at making responsible decisions when handed a large sum of money at once.
- An estate plan can help inexperienced beneficiaries do the right thing with their inheritance, such as getting a good education, purchasing a home, getting a safe care and making wise investments.
- A good estate plan provides for special needs beneficiaries by ensuring that they can receive their inheritance without losing their government assistance.
- You can create your estate plan to encourage your heirs to live well by rewarding them with a portion of their inheritance when they make a good life decisions. Additionally, this can protect your estate from depletion by preventing your heirs from making poor decisions with your funds.
- A good estate plan can give you peace of mind knowing that your affairs are in order and your loved ones are protected and provided for.