A new report in the Dedham Transcript offers five reasons why people involved in estate planning might create a revocable living trust.
First, the source defines a revocable living trust as one that can exist during the donor's lifetime and that can be changed or terminated once it has been created.
Two of the prime reasons for creating a revocable living trust cited by the source relate to children, as the estate planning tool can be used to provide for both very young children and children with special needs. In each case, a revocable living trust helps to ensure that the children are cared for - whether that relates to education or to medical care - and that the assets in the trust are managed by a capable individual before the children themselves come of age.
Two other reasons cited by the source relate to the financial benefits of estate planning. Using a revocable living trust can help to reduce the time and expense of settling one's estate following death, and a trust can also help those who survive the deceased to avoid significant estate taxes.
Lastly, the source states that a revocable living trust can ensure that a person's assets are managed properly in case the person is incapacitated or disabled. A trust can also ensure that a person's wishes for medical care in such a case are made clear.