No one likes to think about the circumstances that can take their life, especially when they have young children at home. Sadly, situations can occur, and if the proper procedures are not taken while you were still alive, it can cause a lot of grief and even harm to your children after you are gone. This idea is especially true if you have a child with special needs.
What is a Special Needs Living Revocable Trust? How is it Different from a Will?
All of us are acquainted with wills. A living revocable trust, also known as a revocable living trust (RLT) is similar to a will, yet it is different. When deciding between the two, a living revocable trust is the better option, especially if you have children with special needs. A will can only benefit beneficiaries after the creator of the will has passed away. However, a living revocable trust can benefit your child while you are still alive.
Advantages of Setting Up a Revocable Living Trust
Since this trust is revocable, it means that you can change it any time or upon any circumstances. There are many advantages of setting up a living revocable trust. The most notable advantage is that the trustee, the person or entity you appoint to delegate your trust according to the documents, does not have to pay many costly fees.
For example, with a living revocable trust, probate is avoided. Probate is the legal transference of property and estate to the beneficiary after the creator of the trust passes. Probate can be costly and public. With a RLT, the pricey and lengthy procedures can be avoided.
An RLT can also eliminate dispute among the family when it comes to the delegation of the estate. While a will can usually causes problems among family members and can be changed after your death in certain circumstances, a revocable living trust can be specified to disinherit any who challenge your trust. This can be especially useful if your children are older, or if there are other family members involved and your children are younger. This certain point of the trust protects those who may not be able to protect themselves, such as your child with special needs.
It is wise to talk with a financial advisor or lawyer to further determine if a revocable living trust is right for you and your family. There are other trust funds that you can set up as an alternative, as well. If you do choose to set up a living revocable trust, know that it can be pricier and more time consuming. It is also best advised to set up a standard will to act as back up if any assets were missed in the trust.
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