When considering an estate planning strategy, some people automatically assume that trusts are too complex, expensive, or unnecessary for their needs. Unfortunately, this can be a costly mistake resulting in an expensive and burdensome probate administration for loved ones after you are gone. Revocable trusts are surprisingly easy to create and maintain. This valuable estate planning tool offers many advantages for even modestly sized estates.
7 Important Facts About New Hampshire Revocable Trusts
Before ruling out a revocable trust when setting up your estate plan, consider these important details:
- You keep control over all of your assets.
Placing your assets in trust does not require you to give up any control. Typically, you will be the trustee of the trust as well as the lifetime beneficiary. This means that you remain in charge of these assets for as long as you wish.
- You can change or terminate your trust at any time.
Circumstances change over time, and your trust can change with it. Revocable trusts are surprisingly flexible. They are easy to amend any time you wish to make an adjustment. For example, you may want to change your beneficiaries, change when and how they receive their inheritance, or change your successor trustee. All of these tasks are simple to accomplish.
- Your revocable trust will not impact your taxes.
Generally speaking, creating a revocable living trust will not impact your tax situation. The IRS and creditors alike largely ignore the trust while you are alive. You will not need a separate tax ID number for the trust while you are alive, nor will you typically need to create any separate tax filing for the trust.
- The beneficiaries that you name will have no legal right to any of your assets until you pass away.
Some people fear that their beneficiaries will have some sort of say over what happens to the assets in the trust while they are alive. Fortunately, this fear is unfounded. Until you pass away, your beneficiaries have no vested interest and no claim against the assets held in the trust. The same is true for the creditors of your beneficiaries. You can also change or remove your beneficiaries at any time.
- Maintaining the trust is easy and inexpensive.
Once the trust is established, maintaining it as simple as ensuring that the terms continue to meet your wishes as time goes on. Changes to the trust are typically easy to accomplish and reasonably priced, as it takes far less time for your attorney to draft an amendment than create an entire estate plan.
- Your trust does not need to be complicated.
Revocable trusts can be fairly simple and straightforward. Depending on your needs and circumstances, your New Hampshire trust attorney can help create a trust that is easy to understand and efficient to administer after you pass away.
- Revocable trusts are surprisingly affordable.
Many revocable trusts are much less expensive to create and administer than the alternative, which is to have your estate go through a probate administration after you are gone. The costs for setting up the trust are up front, and ongoing maintenance costs are limited to the small changes you may make to the trust over time.
Revocable trusts are valuable estate planning tools that should not be overlooked. We encourage you to contact us today for more information and guidance. Call our office at (603) 434-1770 to schedule a consultation.