For many people, making an estate plan involves making sure there is a life insurance policy and making sure there is a will. While those items are important parts of an estate plan, along with the living will and powers of attorney, it is important for people to also determine if they need a trust. Oklahoma residents may be interested in learning about how revocable living trusts might benefit their estate plan.
A revocable living trust can be an effective way to avoid having to go through the probate process. It can also help you to ensure that your assets in the trust are managed if you become incapacitated. Instead of your loved ones having to deal with a court-appointed guardianship, the living trust would allow someone you appoint to handle the affairs of the trust.
The living trust might also help your loved ones save on the costs associated with going through probate court. It is estimated that probate costs average around 3 percent for assets up to $1 million total. From there, the percentage drops.
Another reason a revocable living trust might be desirable is that it will help to ensure the privacy of your family members and your heirs. This is one of the benefits of keeping the affairs of your estate out of probate.
When creating a revocable living trust, you must make sure to title the assets in the trust's name. You should still have a will just in case you forget to title an asset in the trust's name. The will and revocable living trust work together as part of an estate plan that can make it easier on your loved ones when you pass away.
Source: Palm Beach Daily News, "Need a revocable living trust?" Gail Liberman, Apr. 27, 2014