A revocable trust is created to accomplish a few different purposes. Many people create a revocable trust, or a living trust as it is also called, in order to facilitate the transfer of assets without those assets going through the probate process. If you are concerned about who will manage your property if you become incapacitated, the creation of a revocable trust could also make sense as you can name a backup trustee who will be vested with the obligation to take care of your assets held in the trust when you become unable to manage those assets.
If you are thinking about creating a living trust to take advantage of these and other protections that this type of trust provides, you should talk with an experienced attorney. Your attorney can help you to follow the formalities of trust creation. Once you have created a trust, you also must fund it. A Rochester trusts lawyer can assist you in determining what assets should be transferred into the revocable trust.
The Law Office of Michael Robinson, P.C. has extensive experience providing assistance with the creation of a revocable trust as well as with the creation of irrevocable trusts and specific types of trust documents like a special needs trust.
We can advise you on what kind of trust makes sense to achieve your desired aims and will work with you get assets transferred into the trust. Give us a call to find out more about how we can help.
What Assets Should be Transferred Into a Revocable Trust?
When you fund a revocable trust, you need to transfer assets that you want the trust to own so those assets can pass outside the probate process. Some of the different assets that you may wish to transfer into your living trust include:
- Real estate: You can transfer a home or other property into a revocable trust. You can even transfer real property that has a mortgage in most cases, but the mortgage will follow the property.
- Stock shares and bond investments: If you have any security accounts that you own at any brokerage, you can transfer the assets to your trust.
- Business interests: If you own shares of an LLC, have an interest in a partnership, or have an interest in a closely held corporation, you can transfer your company interest to your trust.
- Intellectual property: If you own patents, copyrights, or other intellectual property, this can be transferred to your revocable trust.
- Valuable personal property: If you own antiques, jewelry, art, or other valuable items, you could potentially transfer ownership to your living trust.
You should discuss with your experienced attorney what types of assets it makes sense for you to transfer.
Is a Revocable Trust Right for You?
Creating a revocable trust is a very popular part of the estate planning process because your living trust can make it possible for you to facilitate the fast transfer of trust assets outside of the probate process. You can also avoid probate fees for assets that are held in the trust and that transfer through trust administration. Investopedia estimates that the fees for probating an estate can total as much as three to seven percent of the value of the estate assets, so a lot of money in fees and costs could be saved if you work with an experienced attorney to create and fund a revocable trust.
However, a revocable trust may not provide you with some of the protections that you might expect. For example, a revocable trust is not going to help you avoid estate tax even if the assets held within the living trust don’t transfer through the probate process. If you owe estate tax and are concerned that this big tax bill for your estate is going to have an impact on heirs or beneficiaries, you have to talk with an experienced attorney about other kinds of trusts and estate planning tools that could better help you. A revocable trust is also not going to keep your wealth safe from creditors or allow you to protect the assets that the living trust owns if nursing home care becomes necessary for you.
The Law Office of Michael Robinson, P.C. can assist you in understanding the specifics of the kinds of benefits that different trusts provide and can help you to ensure you create legally valid and enforceable trusts that work to accomplish your goals.
Getting Help from A Rochester Trusts Lawyer
The Law Office of Michael Robinson, P.C. knows New York trust law inside and out and is prepared to offer the help that clients need in creating and funding a trust. Download our free estate planning worksheet to find out more about the ways in which a revocable trust or other type of trusts fit in with your estate plan. You can also give us a call at 585-374-5210 or contact us online to for personalized advice on trust creation and on the estate planning process.