Set Up a Revocable Trust in Ann Arbor, MI
Revocable trusts can play an important role in your estate planning. You may choose to create a revocable trust to avoid probate, reduce estate taxes, manage assets for a child or person with a disability, streamline estate administration, and avoid inheritance disputes.
Call our team at the Bassett Murray Law Group, PLLC in Ann Arbor, MI at 734-930-9200 to learn how a revocable trust can help address your estate planning needs.
How Does a Revocable Trust Work in Michigan?
A revocable trust, also known as a revocable living trust, is a legal entity that can hold, buy, or sell assets. When you create a revocable trust and transfer assets into its ownership, the assets legally become the trust’s property and are no longer in your legal name.
However, unlike irrevocable trusts, a revocable trust allows you to name yourself as the trustee and continue using and managing your assets as before.
When you set up a revocable living trust, you will need to appoint one or more successor trustees who will take over trust management and distribute assets to beneficiaries after your death.
If necessary, your estate planning lawyer can help you update the trust’s terms following events like marriage, divorce, the birth of a child, or the death of an intended beneficiary.
The Benefits of a Revocable Trust
Do you really need a revocable trust? Isn’t it enough to create a will? While a will may suffice for some small estates with straightforward administration needs, a revocable trust may allow you to:
- Set your terms for distributing trust assets. For example, you may stipulate that your adult child will only receive their inheritance when they reach a certain age or graduate from college.
- Avoid probate. Any property you place in a trust, including stocks and bonds, bank accounts, and real estate, is exempt from probate.
- Streamline asset management. When you create a trust, you can name a co-trustee who would manage trust property in case you become incapacitated. Thus, your family wouldn’t need to apply for conservatorship.
Avoid Probate With a Revocable Trust
In Michigan, probate is the default legal procedure for all assets the decedent held solely in their name–including cash, real estate, and personal property. You may wish to avoid probate for several reasons:
- To save time and money. Probate cases in Michigan typically take months and involve court and attorney fees. In contrast, trust assets can pass to your chosen beneficiaries almost immediately.
- To avoid family conflict. Trusts are much harder to contest than wills, which reduces the risk of inheritance disputes.
- To protect your privacy. Probate cases go on public record where anyone can access them, whereas trusts remain private and allow your family to avoid publicity.
Bassett Murray Law Group, PLLC: Estate Planning Attorneys in Ann Arbor, MI
At the Bassett Murray Law Group, we help clients create simplified, efficient estate plans. Let us show you how a will, a revocable trust, and other estate planning tools can protect your family and safeguard your legacy.