What Protections are Available Through a Revocable Living Trust?
In Hawaii, revocable trust or living trust documents are increasingly written as a means to protect assets after death. Every family situation is unique such that you are advised to seek counsel of a trusts lawyer to determine what works best for you and your intended heirs.
But in general terms, a revocable living trust provides several protections that allow you peace of mind that your assets will be allocated as intended:
- Can reduce estate taxes placed on heirs: Beginning in 2011, $1 million is exempt from estate taxes (in 2010 all estate taxes are exempt). For amounts greater than $1 million, a living trust should be structured to reduce the tax.
- Avoid probate: Probate and court costs associated with probate are eliminated with a living trust.
- Faster distribution to heirs: Assets can be given out within weeks, where a distribution as determined by a last will and testament (and thus subject to probate) might take years.
- Out-of-state assets also protected: As probate is required of assets on a state-by-state basis, property and other assets held outside of Hawaii are also protected from the costs and time of probate by a living trust.
- Privacy maintained: Living trusts are shielded from public records, whereas wills are not.
- Control by trustee: If you are incapacitated, your trustee can manage your affairs without the involvement of a court. You also are able to dispute declarations of incapacitation.
If you have any questions regarding the size and nature of your estate, a trusts attorney can help you determine whether a living trust is worth establishing. For the most part, an estate valued at or less than $100,000 might be protected from formal probate if no disputes exist among likely heirs.
Trust law can help manage tax burdens, disputes and other concerns in advance. A Hawaii trusts lawyer with experience should be able to help you sort through the options and implications.
At the Law Offices of Reuben S.F. Wong, our Hawaii trusts attorneys cultivate long-standing relationships with our clients, based on trust and open lines of communication. For the convenience of our clients, weekend appointments are available, and we provide services in Mandarin and Cantonese and are located at 1164 Bishop Street, Suite 1006, Finance Factor Center, Honolulu HI 96813.
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