living trust hawaii of the most popular tools used in estate planning is a revocable living trust. This is a way to distribute property to loved ones. The reason they are favored is that they can be modified should any of the circumstances ever change. A revocable trust attorney in Honolulu can work with individuals who want to learn more.
Unlike assets left in a will, assets included in a trust do not have to go through probate when a person dies. This is one of the reasons that people find them appealing. Loved ones will not have to go through a drawn-out legal process to access the assets the deceased wanted them to have. Trusts will remain private after a death, unlike a will that becomes public record. No one except the beneficiaries and, in some states, heirs, regardless of whether they are beneficiaries, can see the trust documents. The only way they would become public record is if an heir or beneficiary files a lawsuit to challenge the validity of the trust.
The first step is to transfer ownership of assets to the loved ones. The good news is that with a revocable living trust, you still maintain complete control of the property. The most popular assets left in a trust are real estate, bonds, stocks, and cash. Remember, a revocable living trust can be revised if there is a change of heart. It isn’t necessarily permanent.
For a trust to be legally binding, a trustee must be designated. Very much like the executor of a will, the trustee will administer the assets in the trust based on the guidelines set forth. The grantor can make changes to the guidelines as needed. However, upon death, the trust will become irrevocable.
Planning for a Mental Disability
Another advantage of a revocable living trust over a will is that it will prepare an estate in the event you become mentally incapacitated. This isn’t something that only applies when a person dies. The property wouldn’t transfer to the beneficiaries at this point. However, hawaii law firms can simply manage the finances and property for you because you are unable to. Those wanting to address mental incapacity need to make sure their trust includes a comprehensive disability plan.
While a will may be a basic planning document, there are reasons to consider establishing a revocable living trust as well. Those wanting estate planning Honolulu can turn Attorney Michael J Madison. Visit https://www.estateplanninghnl.com/revocable-living-trust-attorney-oahu/ for additional information or to schedule a consultation.