When you consider how you want to disburse your assets, you will probably come across the term revocable trust. This is an instrument to both hold assets and disburses them upon your death.
There are several advantages to using a revocable trust.
This is one of the most flexible types of trust. In many cases, all it takes is a simple amendment to make changes and to add or subtract property from the trust. You can also change things like beneficiaries and Grantors without much hassle.
You want your assets to be available when you or your beneficiaries need them. Your administrator can disburse your assets quickly so your estate can pay any final expenses, bills or outstanding debts that you have. You don’t have to wait for probate. It can also disperse funds before you die in the event of a disability.
Simplified property transfer
A trust makes transferring property simple. You do not need an original copy to transfer property upon your death. It can simplify property transfer even if the original documents are lost or destroyed.
No investment management interruption
There is no need to sell securities or change asset management plans if you are disabled or pass away. No one will need to reregister anything you place in the trust. As long as it is in the documents, your heirs can transfer the assets without selling securities or accounts at a loss.
Unlike most wills, you do not have to probate a trust. This saves your heirs time and money. They do not have to go through the legal process to determine that it is valid to start administering your wishes.