Upon death, any asset titled solely in the name of an individual is considered subject to the probate process. This process is court supervised and serves to validate a will and ensure first that final debts and expenses are paid and then distribute the remaining estate to beneficiaries named in a will. If there is no will, if the person dies intestate, probate proceedings serve to ensure heirs at law receiving the remaining estate. The probate process can be expensive and time consuming. And generally, it is a public court proceeding. The public can attend the proceeding and listen in. Furthermore, Wills must be filed with the court; they can be accessed by anyone willing to pay the court cost of copying the will.
A revocable living trust is an estate planning device that enables asset management during incapacity and distribution of assets after death. It is a private device. And, because the device becomes effective while the creator is alive, no judge is needed to supervise the management of the trust property during life or after the death of the creator; property owned by your revocable living trust will pass when you die according to the terms of your trust without a probate proceeding being necessary. They are considered “living” because they become effective once they have been signed and notarized. Most living trusts are revocable. This means the creator retains the power to amend the trust while he or she is alive as circumstances or wishes change.
Along with a revocable living trust, a trust package also includes a pourover will, a healthcare directive and a financial power of attorney. These documents combined serve to enable the creator to have in place a plan for incapacity or death. For times of incapacity, when the creator cannot speak for himself of herself, agents can be designated to speak to medical professionals and make medical decisions on behalf of the creator. Agents are also designated to handle financial matters on behalf of the creator. The trust package is designed to provide peace of mind for the creator and those who care about him or her.
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