Planning for the future can be an intimidating task, especially when you are concerned about loved ones and making sure your wishes are honored. When planning your estate, there are many things to consider. There are several different types of trusts available for Michigan residents, all with differing benefits and stipulations.
At Law Office of Julie A. Paquette, our experienced estate planning attorneys understand the importance of careful estate planning. Our team has years of experience helping families navigate the often complex world of trusts, wills, and estates. We’re committed to providing clear, compassionate guidance and crafting a personalized solution that meets your needs.
What is a Revocable Living Trust?
A revocable living trust is a legal document that allows you to place your assets—such as real estate, bank accounts, and investments—into a trust while you are alive.
Revocable living trusts can be a powerful tool that provides you with peace of mind and control over your legacy as they allow you to remain in control of your trust while you are still living.
You, as the grantor, can maintain control over these assets and can even act as the trustee, meaning you can manage the trust yourself. You can also designate beneficiaries who will inherit the assets upon your death.
The “revocable” aspect of the trust means you have the flexibility to amend or even dissolve the trust as your life changes. This provides you with ongoing control and the ability to adapt your estate plan as needed.
Benefits of a Revocable Living Trust in Michigan
Revocable living trusts offer several key advantages, making them a popular choice for many Michigan residents:
- Avoid Probate: Probate is a court-supervised process for distributing assets after someone passes away. It can be time-consuming and expensive, not to mention a burden on your loved ones when they are already grieving. Assets held in a revocable living trust avoid probate, allowing for a quicker and more private transfer to your beneficiaries.
- Maintain Privacy: Probate proceedings are a matter of public record. With a trust, the distribution of your assets remains private, protecting your family from unwanted scrutiny.
- Plan for Incapacity: If you become incapacitated due to illness or injury, your designated successor trustee can seamlessly manage your affairs according to your wishes, without court intervention.
- Reduce the Potential for Family Disputes: Clearly outlining the distribution of your assets in a trust can help minimize disagreements among family members after your passing.
- Maximize Control: With a revocable living trust, you retain control over your assets during your lifetime and can make changes to the trust as needed.
How to Create a Revocable Living Trust in Michigan
Establishing a revocable living trust involves several key steps:
- Inventory your assets: Identify all your assets, including real estate, bank accounts, investments, and personal property.
- Choose a trustee: Select a trustworthy individual or institution to manage the trust. This can be yourself, a family member, or a professional trustee. You should also name a successor trustee to take over if you become unable to manage the trust.
- Name your beneficiaries: Clearly identify who will inherit your assets and how they will be distributed among your loved ones.
- Create the trust document: An experienced estate planning attorney can work with you to draft a legally sound trust document that outlines the terms of your trust.
- Transfer assets into the trust: To ensure your assets avoid probate, you must formally transfer ownership of those assets into the trust. This may involve re-titling property or changing beneficiary designations.
Funding Your Revocable Living Trust
Funding your trust means transferring ownership of your assets to the trust. This is a crucial step, as any assets not titled in the name of the trust will not avoid probate.
Some examples of steps you would need to take to fund your revocable trust:
- Real Estate: You would need to execute and record a new deed transferring ownership of your property from yourself to your trust.
- Bank Accounts: You would need to go to your bank and change the ownership of the account from your individual name to the name of your trust.
- Investments: You would contact your investment brokerage firm and instruct them to re-register your investments in the name of the trust.
Contrary to popular belief, trusts are not only for wealthy individuals. Revocable living trusts can benefit anyone who wants to avoid probate, maintain privacy, or plan for incapacity.
With the guidance of an experienced attorney, establishing a revocable living trust can be a straightforward process.
Contact Law Office of Julie A. Paquette Today
A revocable living trust is an important tool for protecting your legacy and making sure your loved ones are cared for after your passing. If you’re considering establishing a trust in Michigan, don’t hesitate to contact Law Office of Julie A. Paquette. Our team can provide a consultation to create a customized trust for you and your needs.
