There are certain things that may be wise to include in an estate plan. One of those is a revocable trust. Louisiana residents who decide to incorporate a trust into their estate plans likely know that a revocable trust is changeable or can be canceled at any time. The grantor — or the person who makes the trust — gives a trustee the right to hold assets such as investments and real estate on behalf of another or others (beneficiary or beneficiaries).
Also known as a living trust, a revocable trust affords privacy since most don’t have to go through the probate process. A will, on the other hand, usually does go through probate and becomes public record. A revocable will can be used for tax advantages since, through it, a credit shelter trust can be set up to help heirs and married couples to avoid the taxable portion of an estate.
Revocable trusts are especially positive for married couples, since things can be set up in such a way that one partner can assume financial control should the other spouse become incapacitated. Also, a will can be challenged, but a grantor can have a trust set up that stipulates certain individuals are to be disinherited — a decision that cannot be challenged. A trust spells out exactly what is to happen to assets when the grantor dies. The revocable trust acts in accordance with the grantor’s wishes.
A Louisiana estate planning attorney may be able to help his or her client set up a revocable trust properly to avoid delays and added costs. People who take the time to plan their estates want to ensure their last wishes are carried out. A living revocable trust is one of the best ways to make sure that happens.