Why a Revocable Trust Might Be Your Estate Planning Secret Weapon

Have you ever wondered what happens after you've crafted your Last Will and Testament? Many people assume that once they've named beneficiaries and specified inheritances, their loved ones will automatically receive what's intended when the time comes. But the reality is far more complex – and potentially frustrating, especially in New York.

The Probate Problem

When you pass away, your Will must go through a court process called probate. This legal procedure:

• Validates your Will

• Authorizes your chosen Executor

• Settles estate affairs

• Resolves creditor claims

• Determines heirs' interests

• Retitle assets as directed

Sounds straightforward, right? Unfortunately, probate can be:

⇒     Time-consuming

⇒     Expensive

⇒     Public (exposing your family's private information

Recent world events, particularly the COVID-19 pandemic, have significantly exacerbated existing challenges in the court system. Court backlogs have reached unprecedented levels, with an average increase of 5,565 cases per office and a 62% rise in case backlogs since the pandemic began. These delays are compounded by staff shortages, including difficulties in hiring and retaining prosecutors.

An important but often overlooked fact in estate planning is that when a will is submitted for probate, all parties who were disinherited or left out, but who would otherwise be entitled to an inheritance, must be served with a copy of the will and given an opportunity to contest it in court. This requirement can potentially lead to unexpected complications and conflicts during the probate process.

Enter the Revocable Trust: Your Estate Planning Superhero

A revocable trust offers a powerful alternative to relying solely on a Will. Here's why it might be your secret weapon:

• Immediate Control: Unlike a Will, a revocable trust takes effect right away. You maintain full control of your assets during your lifetime.

• Flexibility: You can change or revoke the trust at any time as your circumstances evolve.

• Incapacity Planning: A successor Trustee can seamlessly step in to manage affairs if you become ill or incapacitated.

• Avoid Probate: When you pass away, your Trustee can distribute assets controlled by the trust without court involvement, saving time and money.

• Privacy: Trust details aren't filed publicly, reducing the risk of challenges and keeping your affairs confidential.

• Customization: Trusts offer powerful options to protect young children, disabled beneficiaries, or those facing financial difficulties.

  
  

Real-World Benefits

Imagine this scenario: The stock market is volatile, and your estate owns valuable shares. With a Will, your Executor might be stuck waiting for probate which could be weeks, months, or even years, unable to sell declining stocks. A revocable trust allows your Trustee to act swiftly, potentially preserving significant wealth for your heirs.

Take Control of Your Legacy

While we can't change court backlogs or budget cuts, we can take steps to shield our loved ones from unnecessary stress and delays. A revocable trust puts you in the driver's seat of your estate plan.

Ready to explore if a revocable trust is right for you? Don't let court delays derail your carefully laid plans. Contact our office today to schedule a consultation. Together, we'll craft an estate plan that truly protects your legacy and your loved ones.

About the Author

Leslie has been practicing law since 2009 and is the host of the estate planning podcast 'Legacy Purse'. She has a long history of representing family members struggling to inherit property and/or wealth from deceased family members through the Probate Courts. Knowing how time-consuming and expensive the probate process is, Leslie takes great pride in helping her clients learn how to plan and protect their families during their lives so they can avoid the probate court process and save their loved ones that additional grief (and expense).