This article examines the benefits of creating a Revocable Trust in Tennessee as part of a thoroughly prepared estate plan. Having a well-prepared estate plan can help provide you and your loved ones with peace of mind.
A revocable trust is a trust that can be revoked, amended, and otherwise changed by the creator of the trust at any time. The versatility and ability to change the trust during the creator’s lifetime are several key benefits of this type of trust. The major drawbacks are that, unlike irrevocable trusts, a revocable trust does not offer creditor protections. Since a revocable trust can be changed by the creator, it is countable as an asset for most creditors and Medicaid.
While revocable trusts come in many varieties, the most common type of trust prepared by the Sents Law Firm, PLLC is a revocable probate bypass trust. This is a useful tool to utilize in order to avoid probate (court administration of assets when someone dies with or without a Last Will and Testament). A revocable probate bypass trust works as follows: a revocable trust is created, assets are funded into the name of that trust, at the passing of the creator of the trust the trust proceeds are distributed to the beneficiaries the creator nominated in the trust. Provided the trust is properly funded prior to the creator’s passing, then court involvement is not necessary, with limited exception, to get the assets to the beneficiaries (hence the name ‘probate bypass’). Another major benefit of the revocable trust is that it is a private document, unlike a Will which is provided to a court for probate (becoming a filed court record).
Revocable trusts are generally less expensive than irrevocable trusts, but more expensive than a Last Will and Testament. You should consult with an experienced and reputable estate planning attorney to determine what type of document is best to accomplish your highly individualized estate planning.
The Sents Law Firm, PLLC is an Estate Planning legal practice located in Chattanooga, Tennessee (in Hamilton County) and we are well equipped to handle your Estate Planning needs. Give us a call today.
Disclaimer: This blog is published solely for informational purposes, and nothing posted herein should be considered legal advice. By viewing this blog and/or the posts contained herein, you agree that no attorney-client relationship is created between yourself and the Sents Law Firm. Information found within this blog should not be used as a substitute for legal advice from a reputable attorney. Please consult such an attorney for any questions regarding the topics discussed in this blog and how they may impact any specific situation.
