Trusts have become the best way to control your investments even after you pass on. A revocable trust is a legal document declaring the trustee who will manage the assets of the grantor. The grantor writes the trust and can leave it with either a trust company or a bank. At times, the grantor acts as the trustee. Minnesota residents can change or alter revocable trusts once they’re written. The following covers more info on these trusts.
Pros and cons of a revocable trust
Revocable trusts are essential in estate planning and probate. When the trust maker passes on, the assets do not die with the grantor. Thus, assets in a revocable trust avoid probate since they remain functional even after the grantor’s death. The grantor can also choose to transfer the assets to another person after they die. Therefore, this legal document doesn’t require the court’s oversight
Revocable trusts also avoid guardianship to your property in case you become disabled. Additionally, the trust avoids court-supervised probate after you pass on. If you die without having a revocable trust, your family can suffer from extreme conservatorship and restrictive guardianship rules. The trust allows a responsible person to step up and fill your shoes.
Revocable trusts maintain the privacy of your assets. Probate is public, and anyone can access each document outlining your assets. Trust documents remain private since you file them in court.
However, funding a revocable trust is expensive. New title deeds need to be written since your assets will be held by the trust. The time, effort and money put into creating a trust is often worth it, though.
Do you want to write a revocable trust to protect your assets? An attorney can offer more guidance on the best ways to proceed with your estate planning.