If you would like to hold assets outside of your Louisiana estate, it may be possible to do so with a revocable trust. As the name implies, a revocable trust can be altered at any point, and if necessary, you can completely terminate it for any reason. Let’s take a look at some other important details that you should understand about this estate planning tool.
You can be the trustee and a beneficiary
One of the key benefits of a revocable trust is that you can serve as a trustee and name yourself as a beneficiary. This means that you have a greater level of control over trust assets even though you don’t technically own them. However, this also means that these items are more likely to be vulnerable to creditor claims because you still have control of them.
Revocable trusts become irrevocable at the time of your death
A revocable trust cannot be changed after your death. An exception to this rule is if both you and your spouse both serve as trustees. In such a scenario, your spouse oversees the document and can still make changes to it. When your spouse passes away, the trust is frozen and will be administered by a successor trustee.
Trusts generally take effect as soon as they are executed
One of the biggest differences between a will and a trust is that a trust will take effect as soon as it is executed. Therefore, it can serve as a powerful estate planning tool during your lifetime as well as after you die. For instance, if you become incapacitated, the trust may provide a source of income to pay bills or otherwise provide for your needs.
A revocable trust may be an effective way to manage your affairs now and in the future. Ideally, you will review your trust on a regular basis to ensure that it still meets your needs and conforms with state law. Assuming that this document is structured properly, it may allow assets to be distributed without the need for probate.