What is a Revocable Trust Review?
A revocable trust is a legal arrangement in which you control your assets during your lifetime, with the opportunity to amend the trust whenever you like. When you pass away, the trust transfers assets to your chosen beneficiaries.
If you want to set up a revocable trust, there are important things to know.
Read the rest of this article to explore the key features of a revocable trust, why you should review it regularly, and how a lawyer can help you with the revocable trust review process.
What are Key Features of a Revocable Trust?
A revocable trust usually contains the following key features and terms:
- Grantor. This is the person who sets up the trust.
- Trustee. This is the person who manages the trust.
- Beneficiaries. These are the people or companies benefitting from the trust who will receive the grantor’s assets when they die.
- Principal. This is the property or money that’s held by the trustee.
- Amendments. The grantor can change their revocable trust at any time, such as by changing their nominated beneficiaries.
- Without probate. It’s common for assets in a revocable trust to be transferred to beneficiaries without first having to pass through a court process.
- Successor trustee. This is the person the grantor nominates to take over the trust after their death.
How Should You Review a Revocable Trust?
Once a revocable trust is established, it should be reviewed periodically or whenever a significant change has occurred in the grantor’s life, such as asset value changes. Here are some tips to help you review the trust effectively.
Check Asset Titles
All the assets in the revocable trust, such as properties and businesses, must be titled correctly. If they’re not moved into your trust and retitled upon transfer, they won’t be distributed according to your wishes.
Review Beneficiaries
It’s important to ensure that your wishes will be fulfilled upon your passing. Check that you’re happy with all listed beneficiaries and that their allocations are fair.
Consider Special Provisions
In some cases, grantors might wish to include special provisions in the revocable trust document, such as for minor children or beneficiaries with substance abuse concerns.
Confirm State Laws
You want to confirm that the state laws for your revocable trust are correct. Check the document for information about what state is identified as governing the trust. If this is left unspecified, you will have to determine it based on where the trust is being administered.
Align it With Other Documents
Your revocable trust should be aligned with your will, power of attorney, and other estate planning documents so that there is no contradictory information that could result in disputes.
Work with a Tax Professional
There might be tax consequences upon asset transfer or death. Without acknowledging or reviewing these, you could cause unnecessary taxes. Hire a qualified tax professional to identify and handle any potential tax issues.
Check for Vague Wording
You want to check that your revocable trust is drafted with clear, specific wording. If there’s anything vague or confusing, it can create conflict. The good thing about reviewing a revocable trust is that you can amend and improve it.
How Can a Lawyer Help You with a Review of Your Revocable Trust?
Hiring a lawyer for assistance with a revocable trust review is advisable because they will ensure that you maintain control of the trust and keep it legally compliant to avoid issues. A revocable trust should give you peace of mind that it’s properly structured and fulfills your wishes.
Here are some ways in which a qualified lawyer can assist you with a revocable trust:
- They’ll assess your financial situation and estate planning goals to evaluate if a revocable trust is the best choice for you.
- They’ll review the revocable trust document, ensuring that it’s clear and specific.
- They’ll confirm that the trust is aligned with all relevant laws and rules to prevent legal disputes.
- They’ll help you avoid mistakes by checking that all assets are transferred correctly.
- They’ll reduce the risk of disputes by defining the correct processes for managing and distributing assets.
- They’ll align the document with other estate-planning documents, such as your will and healthcare directives.
- They’ll advise you on how to amend the revocable trust if your life circumstances change. This ensures that the trust is legally valid and aligned with your goals.
Where to Find a Lawyer for a Revocable Trust Review
If you need to hire a lawyer for help with a revocable trust, you don’t have to cold-call traditional law firms in your area. You can quickly find a lawyer on an online legal platform that connects you with a range of lawyers who have the expertise to help you with your concerns.
ContractsCounsel is one of the biggest online legal marketplaces that gives you access to a network of vetted lawyers. They’re experienced in revocable trusts to assist you with reviewing them for accuracy.
To request a drafting or review of your trust document, here are the easy steps to follow online.
1. Go to the ContractsCounsel marketplace, where you can post your project for free. Include some details of what you require, such as what assets are included in the trust or key terms you’d like reviewed, to help you connect with the most suitable lawyer.
2. Wait for bids. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
3. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
4. Connect with a lawyer you think is best suited to your requirements and hire them to review your revocable trust.
