If you don’t know a lot about estate planning you may be under the impression that you should use a last will to arrange for the distribution of your property after you die. This may be a perfectly good choice. However, before you make a final decision you should consider the possibility of using a revocable living trust instead.
Probate
Let’s say that you retain direct personal possession of your property through to the time of your death. You arrange for its transfer through the terms of a last will.
When you pass away the property becomes probate property. The property will not be distributed among your heirs until the estate has been probated and closed by the court.
It is likely that you would like your loved ones to receive their inheritances promptly. This could be a preference, but it could be a necessity for some who need immediate liquidity. The process of probate is going to delay things considerably.
In Indianapolis, the exact duration of the probate process will vary on a case-by-case basis depending on the complexity of the matter in question. It will take months at minimum, and years under complicated circumstances.
Revocable Living Trusts Facilitate Probate Avoidance
Instead of maintaining personal possession of your property as you arrange for its transfer through the execution of a will, you could convey the property into a revocable living trust.
While you are living you could act as the trustee and the beneficiary. As result, you would not be relinquishing control of the resources. If you needed to use assets that had been conveyed into the trust, or if you chose to use them for whatever reason, you could do so. You could actually dissolve the trust if this was your choice.
If you do allow the trust to remain intact, the successor trustee that you choose distributes the assets that comprise the trust to the successor beneficiaries after you die. You determine the nature of these distributions when you create the trust agreement.
When assets are transferred to the beneficiaries by the trustee, the probate court will not be involved. These distributions will take place in a timely manner.
Living Trust in Indianapolis: Cost of Trust Creation
Does it cost anything to create a revocable living trust in Indianapolis? The answer is yes, of course there will be legal fees if you want your trust be created properly by a licensed estate planning attorney.
However, there are also costs that are incurred during the probate process. These can include accounting fees, legal expenses, filing fees, the executor’s remuneration, appraisal charges, and liquidation expenses.
There are going to be certain expenses involved either way. It’s all about value. Many informed individuals ultimately decide that the better value lies in the creation of a revocable living trust.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
- Will I Still Have Control Over Assets If I Transfer Them into a Trust? - October 3, 2023
- How Does Life Insurance Fit into My Estate Plan? - September 28, 2023
- Will Medicaid Pay a Family Member to Care for Me in Indiana? - September 26, 2023
