What is a Revocable Trust in Virginia?

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:

1. 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.
2. 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.
3. 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.