Many Northern Virginia families reach a point when a basic estate plan no longer meets their needs. You may own property in more than one state, have several financial accounts or want to make things easier for your family after your death. A revocable trust can help manage your assets during your lifetime and simplify their transfer later.
Do you own property in multiple states?
Owning a vacation home in another state may require probate in more than one state. Each case can involve separate court filings, legal costs and delays.
A revocable living trust can help avoid this extra process. However, creating the trust alone is not enough. You must properly transfer ownership of the property into the trust.
When you place real estate in a revocable trust, it generally avoids probate in the state where the property is located. This can help your family avoid separate probate proceedings for out-of-state property.
Does privacy matter to your family?
Probate records are generally open to the public. These records may reveal details about your assets, debts and heirs. Some families prefer to keep this information private.
A revocable trust generally offers more privacy than a will that goes through probate. The trust document is not usually filed as part of the probate process. However, court disputes, creditor claims and other legal matters may require disclosure.
Are you concerned about probate delays?
Virginia probate timelines vary based on the estate. Creditor claims, tax matters, disputes and other issues can affect how long the process takes.
After your death, the successor trustee generally takes responsibility for administering the trust assets. This may include paying bills, managing investments and following your instructions. However, not every asset is covered. Retirement accounts, life insurance and jointly owned property may pass through beneficiary designations or survivorship rights.
Finding the right estate planning approach
A revocable trust may suit families with property in several states, privacy concerns or a desire to simplify estate administration. However, it does not protect your assets from your own creditors during your lifetime under Virginia law.
An estate planning attorney can review your assets and goals to help determine whether a revocable trust fits your family’s needs.