When people in Maryland consider their estate planning options, the fallback strategy is generally a will. This is the simplest way to ensure their property goes where they want it to go. However, for many, it might not be the ideal way to go about it.
Depending on the circumstances, it could be preferable to look at other estate planning devices. A revocable living trust might sound complicated. However, people in certain situations might be well advised to take a close look at it and understand its benefits. Regardless of how a person goes about crafting their estate plan, it is imperative to be fully prepared with comprehensive guidance.
Know the positives and negatives of a revocable living trust
The key aspect of a revocable living trust is that it avoids the time-consuming and costly process of probate. Probate is necessary with a will. It leaves the person’s assets open to public scrutiny as it is not a private process. The amount of time beneficiaries need to wait from when the testator dies until their estate is settled can be extensive. With a revocable living trust, there is no probate.
A revocable living trust also has contingencies in case the person becomes incapacitated. If, for example, a person is hospitalized and cannot oversee their affairs, a successor trustee can handle it. That avoids the uncertainty of the court naming someone to make decisions in the person’s stead. It can be altered, updated, or ended as the person sees fit.
People who have significant assets and business interests can benefit from the revocable living trust so there is a plan in place to continue their business and financial operations without worrying about a will and probate.
There are also drawbacks associated with a revocable living trust. That includes immediate costs that must be paid, which is not the case with a will. The assets will need to be transferred into the trust. If the person owns real estate, has bank accounts, investments, and more, it will need to be moved to the trust. It can be time-consuming and complicated. There are some assets that should not be put into the trust.
It is wise to have guidance with all forms of estate planning
Estate planning is up to the individual. Since everyone has different needs, objectives, and financial circumstances, their estate plan needs to be formulated accordingly. For some, a revocable living trust simply does not fit into their goals. For others, it is far preferable than a simple will. It is useful to discuss the matter with qualified professionals to determine a path forward.