23 Nov Why a Revocable Trust?
Why Do You Need a Revocable Trust?
“Where there’s a will, there’s a way” is an oft-quoted saying that means if you want something badly enough, you will go to extraordinary lengths to get it. At Phelps LaClair, serving Chandler, Mesa, Phoenix and Scottsdale, the saying is usually changed to, “Where there’s a will, there’s a way…straight to probate.”
Having a will is no guarantee that your assets will be distributed in the way you want. In addition, a will can make no provisions for asset protection while you are alive. Nor can it determine who will take care of your medical and financial decisions should you become incapcitated.
However, a revocable trust can guarantee that your beneficiaries will receive their inheritance. Probate is not necessary with a well-crafted trust, thus saving your heirs time and expense in the legal wrangling that often accompanies the resolution of a will.
With a trust, you can also determine the time and conditions under which your beneficiaries receive their portion of your estate. A trust adds another layer of protection for immature heirs—as well as protecting the inheritance from ex-spouses, frivolous lawsuits, and bad business deals or bankruptcy.
In a revocable living trust, a successor trustee is named. This person has the right to manage your affairs when you die or if you become incapcitated. That means he or she has the authority to buy and sell, borrow or transfer the assets within the trust, as long as their decisions are for the benefit of the beneficiaries. With a medical power of attorney, the trustee also has the authority to make medical and end of life decisions in consultation with your doctors. The trust cannot be changed once you are dead or unable to make decisions on your own, so the successor trustee is bound to follow your directives. There is no will that can give you this level of protection.
Where there’s a will
Why a revocable trust? Because it’s the best way to protect your estate and to transfer the wealth you have spent your life building. At Phelps LaClair, we have the experience to design an estate plan to meet your specific needs and goals. After all, we are a 2nd generation estate planning law firm that has been in business for forty years. Come in and see us for more information. Where there’s a will, we are ready to show you a better way. Remember, your first consultation with us is free. Call us today!