Revocable trusts are one of several different types of trusts which you may wish to include in your comprehensive estate plan. Revocable trusts can be used to protect your assets, but you need to understand how they work, when they are used, and what to include in your trust document. For example, one of the things you must make sure you do when you create a revocable trust is to name a backup trustee.
The creation of a revocable trust is a complicated process, especially since you must make sure you do it right to get the protections you expect. You also need to make a determination that a revocable trust is the right type of trust to use to accomplish your desired purpose. Unsworth LaPlante, PLLC can help you to ensure that you have done everything you need to in order to create a legally valid revocable trusts that provide the protection you are looking for. Give our Burlington trust lawyers a call as soon as you begin your estate planning process or if you want to find out more about what trusts can do for you.
Why a Successor Trustee Is Important for Revocable Trust?
Title 14A of the Vermont Statutes sets forth all of the key rules which you need to know on trusts. Revocable trusts, unlike irrevocable trusts, can be changed or modified at any point over the course of your life. These trusts aren’t going to put resources out of reach when it comes to estate taxes and these trusts are also not going to prevent resources owned by the trust from counting for purposes of Medicaid coverage.
What irrevocable trusts can do, however, is allow your assets to transfer outside of probate. This means when you pass away, your heirs who you name as trust beneficiaries when you create the revocable trust are going to be able to inherit quickly and begin managing the property you have left them.
This is very important if you have a business which needs to be run by its owners which you don’t want to exist in a period of limbo as the probate process happens. It is also very important to facilitate the fast transfer of assets outside probate if you have investments which require careful and skillful management and you want the new owners to acquire them right away.
Revocable trusts can also be very beneficial when used as an asset protection tool during your lifetime. However, to be effective at serving this purpose, and to be effective at protecting all of the assets you put into the trust both before and after your death, you need to name a backup trustee.
The backup trustee will take over the management of your assets which are held in the trust when the primary trustee can no longer manage them. Usually, you will be the primary trustee when you create a revocable trust. If something happens to you, the backup trustee will take over and begin managing assets. It is the naming of the backup trustee which allows you to use living trusts as part of your incapacity plan.
You should ensure your backup trustee is someone who you can trust absolutely to step in if you become incapacitated and to make smart choices in managing the assets and property held within the trust. The backup trustee has a fiduciary duty and will be expected to ensure trust property is carefully managed and protected for the benefit of the trust beneficiaries who you should also be sure you name in the trust document.
How can a Burlington Trusts Lawyer Help You?
Trusts provide important asset protection. In addition to revocable trusts, which can ensure your assets are managed appropriately when used correctly, you can also consider the use of irrevocable trusts to provide protection for your assets in case you need nursing home coverage or if your estate is high enough to be subject to taxes after your death.
Unsworth LaPlante, PLLC can help you to determine what types of trusts are right for you and can help you with the trust creation process. To learn more about revocable and irrevocable trusts, join us for a free seminar. You can also contact us at any time to get personalized advice that is designed to meet your specific asset protection goals. You can give us a call at (802) 879-7133 or contact us online today so we can get started on protecting your assets and helping you to make effective use of legal tools.