Revocable Trust

A revocable trust is a trust whereby provisions can be altered or canceled dependent on the grantor. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries. This type of agreement provides flexibility and income to the living grantor; He is able to adjust the provisions of the trust and earn income, all the while knowing that the estate will be transferred upon death

 

Characteristics of a Revocable Trust

The money or property held by the trustee for the benefit of someone else is the principal of the trust. The principal changes often due to the trustee’s expenses or the investment’s appreciation or depreciation. The collective assets comprise the trust fund. The person or people benefitting from the trust are the beneficiaries. Because a revocable trust lists one or more beneficiaries, the trust avoids probate.

Advantages of a Revocable Trust

If the grantor experiences health concerns through the aging process, a revocable trust allows the grantor’s chosen manager to take control of the principal. If the grantor owns real estate outside his state of domicile and the real estate is included in the trust, an ancillary probate of the real estate is avoided.

If a beneficiary is not of legal age and cannot hold property in his name, the minor’s assets are held in the trust rather than having the court appoint a guardian. If the grantor believes a beneficiary will not use the assets wisely, the trust allows a set amount of money to be distributed on a regular basis.

Disadvantages of a Revocable Trust

Implementing a revocable trust involves much time and effort. Assets must be retitled in the name of the trust to avoid probate. The grantor’s entire estate plan must be monitored annually to ensure the trust’s objectives are being met. Costs of maintaining a revocable trust are greater than other estate planning tools such as a will. A revocable trust does not offer the grantor tax advantages. Since not all assets will be included in the revocable trust, the grantor must create a will to designate beneficiaries for the remaining assets, to avoid probate. During the grantor’s lifetime, creditors can still reach the property in a revocable trust.

With over 18 years’ experience, Attorney Isabel Betancourt-Levey applies her knowledge and conscious experience to create a specially-tailored estate plan to meets each client’s individual needs. She will personally meet with you to listen, present the best estate planning options available for you, and deliver an estate plan that honors your intentions so you can provide for your loved ones following that one certainty in each of our lives. To meet with Attorney Isabel Betancourt-Levey for an initial complimentary consultation call 786.262.5105, send us an email at isabel@ibllaw.com, or visit the ‘Contact Our Firm’ section on the right.

 

20801 Biscayne Boulevard, Suite 300
Aventura, Florida 33180 (Main Office)

6625 Miami Lakes Drive, 3rd Floor
Miami Lakes, Florida 33014

1000 5th Street
Miami Beach, Florida 33139

Telephone Number: 786.262.5105

Monday - Friday, 8:30am-5:30pm

Serving Greater Miami and South Broward including: Aventura, North Miami Beach, Hallandale Beach, Sunny Isles Beach, Miami Beach, North Miami, Miami Shores, Miami Lakes, Doral, Hialeah, Hialeah Gardens, Pembroke Pines and Hollywood.

Translate »