A Revocable Living Trust Can Protect Your Beneficiaries Inheritance

Your beneficiaries inheritance will, in most cases, encompass a wealth of different assets. These assets will go to your beneficiaries but, depending on how you set up your estate, they may need to go through probate.

Probate is long and, at times, very expensive. Your beneficiaries may not receive their inheritance for nine months – or more, depending on your estate. And, when they do, they may not receive as much, due to the costs of probate.

Going over how a revocable living trust can protect your beneficiaries inheritance, and speaking with a lawyer, will help you protect your beneficiaries inheritance.

What Is A Revocable Living Trust? 

A revocable living trust is a legal tool that gives your assets to a trustee. By giving your assets to a trustee, those assets will go to your chosen beneficiaries, in the event of your passing.

Just as an example, if you set up a revocable living trust and designate your niece as a beneficiary of your electronics then, when you pass away, those electronics will go straight to your niece.

On the other hand, if you set up a will, then those electronics – and all of your assets – will need to go through probate.

Probate means it might take quite a while – a year, even – for your niece to receive those electronics. To go along with the duration, probate is expensive. Your niece may not receive all of the assets you wish to give her.

A revocable living trust ensures that your beneficiaries receive the assets you wish to give them in a timely manner. And, if you ever want to revoke or modify the trust, you can do so with ease. Other trusts don’t let you do this.

How Can A Revocable Living Trust Protect Your Beneficiaries Inheritance? 

A revocable living trust can protect your beneficiaries inheritance in two major ways: bypassing the probate process and creating provisions that protect your beneficiaries.

The first point has already been discussed. But, the second point is a little more complex: you can develop provisions, for your revocable living trust, that are specifically meant to protect your beneficiaries.

A good example of the above is as follows: your revocable living trust can include a spendthrift clause. This provision will restrict the amount of money your beneficiary receives, at one time.

If you intend to give your beneficiaries $1,000 a month, you can do so with a spendthrift clause. Doing so can prevent your beneficiary from wasting the money or, even, having the bulk of their inheritance seized by creditors.

Many other provisions exist. You can use these provisions to protect your beneficiaries, as well as the assets you would like to give them. That way, they receive everything, and don’t have to worry about it being taken away. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to develop a revocable living trust, you should work with someone who can help. Speak with a Florida estate planning lawyer at Millhorn Elder Law Planning Group today to set up a revocable living trust that protects your beneficiaries inheritance.

Sources: 

law.cornell.edu/wex/spendthrift_clause

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0736/Sections/0736.0502.html