A revocable living trust is one of many types of estate planning tools you can create and use for protection later in life, and this type of trust covers three main things. A revocable living trust is not always the best option for everyone, but it tends to offer the right types of protection and coverage that many people need. Keep reading for an explanation of how this type of trust works and what it covers.
It holds your assets while you live
The first area of coverage you have through a revocable living trust is coverage for all the things you own while you are still living. As with any type of trust, you choose what goes in it, and the trust is a legal entity that holds your assets. The purpose is to protect your assets and make transferring them to your beneficiaries easier later on in life when this event takes place. While you are living, you can put any assets into the trust at any time, and you can also make changes to the trust whenever you would like. While you technically still own the assets that are in the trust, they also technically belong to the trust, and this offers protection.
It gives you protection if you are mentally incapacitated
The second thing that a revocable living trust offers is protection for you, your family, and your things if you reach a point in life where you are mentally incapacitated. A person who reaches this point can no longer make wise decisions about money, finances, or most other things. Through this type of trust, you name a person who will take over control of these types of decisions when you cannot any longer.
It creates a plan for after death
Finally, a revocable living trust also gives you protection after death. You can be certain that your wishes will be carried out if you have this type of trust. In it, you name a person who will receive control of managing the trust after you pass away. That person's job is to ensure that everything you own gets distributed and transferred to the right people, and all of this is done through the help of a lawyer.
If you are interested in learning more about this type of trust or other estate planning tools, you can by contacting a lawyer who offers estate planning services.