Important facts about revocable trusts

On Behalf of | Aug 31, 2022 | Trusts

Trusts are important estate planning documents that you can use to protect your assets and your loved ones by specifying how your property is to get managed and distributed after you die. A revocable trust is a special type of trust that Oregon residents may want to consider if they want to have control over their assets during their lifetimes.

What is a revocable trust?

Revocable trusts are a type of trusts that allow you to change the terms of the trust or revoke it entirely at any time. This means that you can modify the trust to suit your changing needs or circumstances. For instance, you may want to change the beneficiaries of the trust or the way in which your assets are to get distributed.

What are the benefits of a revocable trust?

One of the most significant benefits of a revocable trust is that it can help you to avoid probate, which is the legal process through which your assets are distributed after you die. If you have a revocable trust, your assets will be distributed according to the terms of the trust, without going through probate. This can save your loved ones time and money. In addition, a revocable trust can provide you with flexibility and peace of mind knowing that your assets will be handled according to your wishes.

A revocable trust can also help you to manage your assets if you become incapacitated. If you become unable to make decisions about your finances or property, the trustee of your trust will be able to step in and manage things for you. This can provide peace of mind for both you and your loved ones.

The first step in creating a revocable trust is to choose a trustee. This person will be responsible for managing the trust and carrying out your wishes. You will also need to transfer ownership of your assets into the trust. You can do this by changing the ownership of your bank accounts, investment accounts and real estate into the name of the trust. You will also need to update your will to reflect the fact that you have created a revocable trust.