Estate planning is a critical aspect of financial management that needs astute care and cognizant decision-making. Among the various tools available for efficient estate planning, Revocable Living Trusts stand out due to their unique characteristics.
In simple terms, a revocable living trust in Oregon is a legal document that, much like a will, includes your instructions for what you want to happen to your assets when you die. But, unlike a will, a revocable living trust takes effect as soon as you create it.
This type of trust is called "revocable" because you can amend or revoke it at any time as long as you are mentally competent. It is termed "living" as it is established during your lifetime.
Find out how estate planning is made easier with revocable living trusts.
A significant advantage of a revocable living trust is that it facilitates a smooth, direct transfer of assets after your death. Direct transfer means your estate can avoid the costly, public, and time-consuming process of probate, which is a legal procedure for validating a will in court.
Assets processed through wills and probate become public records. However, the distinctive feature of a revocable living trust is that it maintains the privacy of your estate’s details. Therefore, the terms of your trust, what assets you have, and to whom they are being distributed will remain confidential.
Quite importantly, a free revocable living trust can provide for your incapacity, i.e., if you become unable to manage your own affairs. Typically, the person you appoint as your successor Trustee will step into your shoes and manage your assets for your benefit, saving time, money, and helping avoid a court-supervised conservatorship.
Being "revocable," you can make changes to the trust arrangement during your lifetime. This flexibility of these US legal forms allows you to accommodate the slightest changes in your wishes concerning the distribution of your property and assets.
Revocable living trusts can also be structured to reduce estate taxes. For large estates, a popular way to accomplish this is setting up AB or credit shelter trusts.