Protect your estate

Benefits of a revocable living trust

A revocable living trust is a legal document that allows you to transfer ownership of your assets to a trust during your lifetime. While you maintain control over the assets as the trustee, the trust can provide several benefits. 

Probate avoidance 

• Speedier asset distribution: Assets held in a revocable living trust bypass the probate process, which in some states can be time-consuming and costly. 

• Privacy: Probate proceedings may be public records, while a revocable living trust offers more privacy. 

• Succession planning: The trust outlines who will inherit your assets and when. 

Flexibility 

• Modifying or revoking the trust: You as the grantor (the creator of the trust) can amend the trust terms or revoke the trust entirely during your lifetime, which can be helpful if circumstances or intended beneficiaries change. 

• Control of distributions:  Most revocable trusts are drafted so that the trustee must follow the grantor’s directions regarding distributions and payment of bills while the grantor is alive. 

Peace of mind 

• Control: Knowing your assets will be managed according to your wishes can provide peace of mind. 

• Streamlining asset management: Titling assets in your revocable trust allows the successor trustee to seamlessly take over the management of trust assets if you should pass away. 

Incapacity protection 

• Incapacity: If you become incapacitated, the successor trustee steps into your shoes and can manage the trust assets for your benefit. 

Estate tax planning (limited) 

• Tax reporting: Most revocable trusts use the grantor’s social security number for tax reporting purposes during the period while the trust is revocable by the grantor. 

• Basis step-up: Under current tax law, assets in a revocable living trust generally result in a step-up in basis at your death, potentially reducing capital gains taxes for your beneficiaries. 

While revocable living trusts can be beneficial, they may not be suitable for everyone. It’s essential to consult with an estate planning attorney to determine if a revocable living trust is right for your specific circumstances. 

Contact your local Alpine Bank Wealth Management trust officer if you have questions about trustee or investment services for your revocable trust.   

*Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the bank. 

• October 23, 2024
• Financial
• Alpine Bank Staff

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