Estate planning in Georgia often leads people to consider revocable trusts. This popular tool offers benefits but also has drawbacks. Let’s explore the pros and cons of revocable trusts in Georgia to help you decide if they fit your estate plan.
What is a revocable trust?
A revocable trust, also called a living trust, holds and manages your assets during your lifetime. You can change or cancel this trust anytime. When you pass away, the trust becomes irrevocable, and your chosen successor trustee distributes the assets as you’ve specified.
Pros of revocable trusts in Georgia
Revocable trusts offer several advantages:
- Assets in the trust skip the often time-consuming and expensive probate process.
- Unlike wills, trusts aren’t public records, keeping your affairs private.
- You can alter the trust as your life circumstances change.
- If you become incapacitated, your successor trustee can manage your affairs without court involvement.
These benefits can offer peace of mind and potentially save time and money for your beneficiaries.
Cons of revocable trusts in Georgia
Despite their benefits, revocable trusts have some drawbacks:
- Setting up a trust usually costs more than creating a will.
- Trusts need active management, including transferring assets into the trust.
- Revocable trusts don’t offer tax advantages during your lifetime.
- Trusts can be harder to set up and understand than simple wills.
Consider these factors carefully when deciding if a revocable trust suits your needs.
Your decision to use a revocable trust in Georgia depends on your specific situation, including your assets, family dynamics and long-term goals. An experienced estate planning attorney can help you determine if a revocable trust fits your estate plan.
By understanding the advantages and disadvantages of revocable trusts, you can make an informed choice about your estate planning strategy. Whether you opt for a revocable trust or another estate planning tool, the most important step is to start planning now to protect your assets and provide for your loved ones.
