When working through the estate planning process, it may be prudent to consider a Revocable Living Trust (RLT), also known as a living trust or revocable trust, as a mechanism for protecting your assets.
Unlike a will, which takes effect upon your death, an RLT is a means of managing your assets and protecting your interests while you’re still living. Setting up an RLT will require you to name a Trustee who will manage your assets once legal ownership of the assets is transferred to the trust.
There are a number of good reasons why an RLT makes sense for many estate plans. An RLT can be a powerful tool for protecting your interests if you:
Need assistance and support with financial matters
Not everyone has the knowledge necessary or the desire to effectively oversee assets. For example, if your spouse traditionally handled your financial decisions but he or she is no longer living, you may find relief and comfort in having a Trustee take over managing your assets.
Think you may become incapacitated
Your health may be a factor to consider. If you suffer from a chronic illness or conditions that you know will erode your quality of life over time, an RLT may give you peace of mind knowing that your assets and financial affairs will be managed in a responsible and careful way.
Want to protect yourself from poor decisions
Even healthy, independent, and fully competent individuals may experience a decline in mental or physical function as they age. Unfortunately, deteriorating cognitive skills may lead to poor or impulsive decisions. A Trustee can refuse to allow a declining person to engage in transactions that may be harmful or ill-advised.
Fear that others will take advantage of you
One of the other risks of being in a confused or weakened state is that predatory people, either family members or outsiders, may try to take advantage of you. They may, for example, try to convince you to sign over property or give them large sums of money. A Trustee can act as a gatekeeper who protects your interests from fraudulent, deceptive, or opportunistic actions by others.
The experienced attorneys at Morgan & DiSalvo can help you decide if a living trust is right for you and your estate plan. Please call us at 678-720-0750 or email us at info@MorganDiSalvo.com.
