People in Michigan will not live forever. One of the few guarantees in life is that people will pass away at some point in time. During people’s lives though they may acquire a significant amount of property and assets. People know that they cannot bring that with them when they die and it will be passed on to loved ones who survive them. However, as people do not know when or how they will pass away, it is important that people plan for this while they have time.
One of the most common ways that people prepare for this is by drafting Wills. These are effective, but they have limitations. Another option that people have is drafting a revocable trust. These are documents that have similarities to wills in that they dictate who people want to have their property when they pass away, but there are some big differences as well. These differences can be beneficial for certain circumstances.
Benefits of revocable wills
One major difference is that with a revocable trust people transfer the title of the property to the trust and are no longer the owner of the property. This provides one of the main benefits of a revocable trust which is that it allows people to avoid probate for the property transferred to the trust. By avoiding probate, it also allows people to keep their information private since probate is a public court proceeding.
In addition to avoiding probate, it also gives people protections if they become incapacitated prior to passing away as the trust can be administered while they are still living. It also allows people to have a trustee manage the assets for beneficiaries past their 18th birthday or direct funds go to a specific purpose on behalf of beneficiaries instead of giving them money outright.
It is important that people in Michigan plan for what will happen after they pass away. One way that people can do this is by having a revocable trust. It provides people with more control over the assets after they pass away. These need to be drafted and funded properly though and consulting with experienced attorneys may be beneficial.