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.
Photo by Ken_Mayer