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What is a Revocable Trust in Virginia?
- posted: Jun. 24, 2020
- Firm News
What is a Revocable Trust in Virginia?
A Revocable Trust, sometimes called a Living Trust, is a document where you as the Grantor create a Trust for the care and management of your assets. You can include many different types of assets: real estate, bank accounts, companies, etc. It is extremely important to include these assets prior to your passing, otherwise the assets will pass by probate, and probate can be a long and costly matter.
There are several reasons why someone would want to setup a Revocable Trust, such as:
- Avoiding Probate. Assets included in a Revocable trust are held in the Trust’s name rather than the Grantor’s name. This means that any assets included in the Trust will not be subject to probate.
- Avoiding Estate taxes. The Estate Tax Exemption is currently at approximately $11.5 million for an individual and $23 million for married couples. It is important to note that this is a temporary ceiling increase and will sunset in 2025. The IRS has provided guidance indicating that the Estate Tax Exemption, if used now, will be honored even after the sunset date.
- Insuring that loved ones are taken care of. This could be an adult with a disability or simply a child who has difficulty with money. A Revocable trust can be drafted in a way to protect them and prevent their creditors from accessing the assets of the Trust.
If you are interested in having a Trust set up please feel free to contact our office. Call our office today at 540-443-9255, or email at [email protected] to discuss your estate planning needs with an experienced estate planning attorney.