Part of the function of a Washington, D.C. resident's estate plan is to make things easier for the family members that are left behind. The probate process can be complex, time consuming and costly without proper planning ahead of time. In addition to a will, a revocable living trust can help family members cut through a good portion of the process since the property held in the trust does not have to go through probate.
Procedurally, that may be considered the best benefit of the trust for family members. More important, however, is the fact that the person creating the trust (the grantor) retains control over how the assets will be distributed to the beneficiaries of the trust. Whether the grantor has a minor child, an adult child who is not financially savvy or a child with special needs, the trust can provide for them in a manner that can ease a parent's concerns. The person chosen to administer the trust (the trustee) will be responsible for carrying out the grantor's wishes in accordance with the provisions of the trust.
Nearly any asset can be placed into the trust, such as real estate, life insurance and retirement accounts, along with any other assets an individual owns. Any business interests may also be held by the trust. Transferring assets into the trust will need to be done in accordance with current laws, however, in order for the transfer to be legal.
A trust can help streamline the probate process for a Washington, D.C. resident's estate, which family members may appreciate during an already challenging time. Setting up a revocable living trust can take some time. Even so, once the trust is executed and funded, the grantor can rest easy knowing that the beneficiaries will be taken care of in the manner he or she desires.
Source: entrepreneur.com, "Smart Estate Planning Tips for Entrepreneurs", Mark J. Kohler, June 25, 2015