There’s a lot of information out there about estate planning, particularly when it comes to living trusts, which are also called revocable trusts. This type of trust can solve a variety of financial issues that you may not be able to solve with a will or other forms of estate planning. If you’re a New York resident, here are some things to consider about a revocable trust.
What revocable trusts are used for
When it comes to estate planning, living trusts describe trusts that a person creates during their lifetime. Living trusts are beneficial for managing assets or providing financial protection if you become disabled or ill. With a living trust, you can change or revoke the trust as you see fit.
Estate planning can also include the option of creating an irrevocable living trust, but you won’t be able to make any changes to the trust once you create it. Irrevocable trusts are put in place to give you certain forms of asset or tax protection.
Understanding revocable trusts
Living trusts can be revocable and are effective throughout the course of your lifetime. This type of trust has one or more trustees who owns a property that you’ve transferred to the trust during your lifetime. While you’re alive, you, the trustee, are responsible for managing the property.
If you decide to make the trust irrevocable, the person you leave your property or assets to can make changes without your input or consent. Similar to a will, revocable or living trusts can provide instructions for property distribution when you pass away.
However, unlike a will, the trust can also provide you with a vehicle for property management and authorizes the trust the manage the property. You can use it for the benefit of yourself and your family without appointing a guardian if you become incapacitated.