Revocable Living Trusts
Estate Planning Attorneys in Foley
Revocable living trusts are relationships whereby one party (settlor or grantor) during his or her lifetime transfers real and/or personal property to a second party (trustee) for the benefit of a third party (beneficiary). This trust relationship is governed by a document titled “trust agreement” or “trust declaration”. A trust agreement outlines the identities of the settlor, trustee, and beneficiary, and identifies how the trustee is to manage and distribute the property placed in the trust. More than one individual or corporate entity can play the role of a trustee and a trust agreement can designate more than one beneficiary. Further, the same person can be the settlor, trustee, and beneficiary of a trust. A Daphne estate planning attorney can help you understand these trust agreements.
To schedule a free consultation with our estate planning lawyers in Foley, please either call us today at (251) 444-7000 or contact us online.
About Revocable Living Trusts in Alabama
Generally, a revocable living trust allows the settlor to also be the trustee and beneficiary of the trust. This arrangement is advantageous as the settlor is not only able to control and manage the trust property but also benefit from any income of the trust property during his or her lifetime. Further, a revocable living trust permits the settlor to identify the people who can benefit from the trust property after the settlor’s death.
A common example used by a Foley estate planning lawyer includes a living trust which:
- Provides for the settlor during the settlor’s lifetime
- After the settlor’s death, provides for the benefit of the settlor’s surviving spouse
- Upon the death of the surviving spouse, distributes the trust property to their children and/or lineal descendants
Settling a living trust during your lifetime can be extremely advantageous. A living trust is considered the best tool to avoid probate. The key to avoiding probate is that, at the time of your death, you leave no assets in your name. A living trust allows you to transfer all of your assets to the trust such that it is the trust that owns them and not you. As a result, at the time of your death, you are left with no probate assets and hence there is no need to probate your estate. The beauty of a living trust is that you are able to avoid probate and at the same time control and benefit from your assets.
Other advantages of a living trust include providing for:
- Minor children and loved ones who have special needs or are unable to manage their assets
- An immediate transfer of your assets to your loved ones upon your death
- Management of your assets in case of incapacity
- A reduction in estate taxes
- Privacy
Call (251) 444-7000 Today
As mentioned above, there are numerous benefits to settling a revocable living trust. If you are interested in learning more about living trusts and how to avoid probate then please call our estate planning attorneys in Foley for a free consultation. Our lawyers will be happy to address all your concerns and assist you in preparing a customized living trust to help achieve your goals. We proudly serve Daphne, Foley, Spanish Fort, Fairhope, and all of Alabama.
Call us today at (251) 444-7000 for your free case evaluation.