Get A FREE Consultation!
We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)
Menu
What is a revocable living trust in Georgia and how do they work?
In this article, you’ll learn about:
Let’s dig in.
We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)
A revocable living trust in Georgia is a type of estate planning tool.
It allows you to manage and control your assets during your lifetime and distribute them upon your death.
As the name suggests, a revocable trust in Georgia is flexible.
You can alter or dissolve it entirely as long as you are alive and mentally capable.
In the structure of a Georgia revocable living trust, you usually act as the trustee.
This means you have control over the assets in the trust.
Additionally, you specify a successor trustee who steps in:
One of the main advantages of revocable living trusts is that they help avoid probate.
Probate in Georgia is a legal process that can be lengthy and costly.
With a revocable living trust in Georgia, your assets bypass probate, passing directly to your specified beneficiaries.
Read More: Who Owns The Property In A Revocable Trust?
Setting up a revocable living trust in Georgia involves several key steps:
In Georgia, revocable and irrevocable trusts in Georgia are estate planning tools that let you manage and pass on your assets.
A revocable living trust is one you can change or cancel at any time while you’re alive and mentally capable.
You usually act as the trustee and keep control over your assets.
A revocable family trust works the same way but is set up for the benefit of family members.
On the other hand, an irrevocable living trust is different.
Once you set it up, you can’t change or cancel it without the beneficiaries’ agreement.
When you transfer assets into an irrevocable trust, you give up control over those assets.
This is true for an irrevocable family trust as well.
The main advantage of an irrevocable trust is it can offer protection against creditors and estate taxes.
This is because the assets in the trust are no longer considered your personal assets.
Revocable trusts don’t offer this level of protection because you still control the assets.
So, while a revocable living trust offers flexibility and control, an irrevocable living trust offers more protection and potential tax benefits.
Read More: Does A Revocable Trust Become Irrevocable Upon Death
These are the key elements of a revocable living trust in Georgia.
The grantor, also known as the settlor or trustor, is the person who creates a revocable living trust.
They put their assets into the trust and set the rules for how the revocable living trust in Georgia should work.
The grantor has several responsibilities.
One of the main ones is deciding what assets to put in the trust.
This could be real estate, money, investments, or other property.
The grantor also chooses the trustee who will manage the trust.
Often, the grantor acts as the trustee while they’re alive and capable.
This means they keep control over their assets.
Another big job for the grantor is naming the beneficiaries.
These people will get the assets in the trust when the grantor dies.
One of the critical things about a revocable living trust is that the grantor can change it.
As long as they’re mentally capable, they can:
This flexibility is a big advantage of a revocable living trust.
Read More: Joint Tenants With Rights Of Survivorship In Georgia
The trustee’s role in a trust involves managing and overseeing the assets.
The trustee makes decisions about the trust assets, follows the trust rules, and works for the best interest of the beneficiaries.
The trustee’s duty of care to the beneficiaries means acting responsibly and carefully when managing the trust’s assets.
The trustee must avoid reckless actions or neglect that could harm the trust.
They should handle the trust assets as carefully as if they were their own.
The trustee also needs to be fair to all beneficiaries.
They can’t favor one beneficiary over another unless the trust allows it.
Read More: Right Of Survivorship Deed In Georgia
The successor trustee is the person you pick to take over the management of your trust if you can’t do it yourself or when you die.
While you’re alive and capable, you manage your own trust as the trustee.
But if you get sick or mentally unfit, the successor trustee steps in.
They make decisions about your assets according to the instructions you’ve left in the trust.
When you die, the successor trustee has another important job.
They distribute your assets to your beneficiaries.
This process bypasses probate, which makes it faster and simpler than using a will.
So, simply, the successor trustee manages your trust if you can’t.
And they carry out your wishes after your death.
Read More: Surviving Spouse Rights In Georgia
Beneficiaries are the individuals or entities you name in your revocable trust who will receive your assets after your death.
They could be your family members, friends, or even organizations like charities.
When you create the trust, you specify which assets each beneficiary will receive.
You can change who your beneficiaries are or what they receive at any time, as long as you’re mentally capable.
That’s the ‘revocable’ part of the revocable trust.
After your death, the successor trustee you appointed manages the asset distribution process.
They transfer the assets in the trust to your beneficiaries according to your instructions.
One major advantage is that assets in the trust avoid probate.
This means your beneficiaries often receive their assets faster and more privately than they would through a will.
In short, the beneficiaries in a Georgia revocable trust are those you choose to receive your assets after your death.
The trustee ensures they get these assets according to your instructions and without going through probate.
Read More: How Long Does An Executor Have To Settle An Estate In Georgia
Let’s look at the benefits and disadvantages of a revocable living trust.
A revocable living trust in Georgia comes with several benefits:
Read More: Heir Property Laws In Georgia
Here are the potential drawbacks of a revocable trust in Georgia:
Read More: How To Set Up A Family Trust
While a revocable trust in Georgia is a great tool for estate planning, there are certain things you shouldn’t put into it:
Read More: At What Net Worth Do I Need A Trust?
Let’s compare revocable living trusts to wills in Georgia.
A revocable trust and a will are tools for estate planning in Georgia, but they serve different purposes.
A revocable trust is a document that you create while you’re alive.
It holds your assets, and you control these as the trustee.
You also name a successor trustee to take over if you can’t manage your assets or after you die.
Your chosen beneficiaries then receive the assets in the trust, skipping probate.
You can change or end a revocable trust any time you want.
A will, on the other hand, is a document that outlines who gets your assets after your death.
The process goes through probate, meaning a court oversees the distribution of assets.
A will also lets you name guardians for minor children, something a revocable trust can’t do.
In short, a revocable trust and a will both allow you to direct who gets your assets after your death.
However, a revocable trust also provides management of your assets if you become incapacitated and avoids probate.
A will, though, is the only one that can name guardians for your minor children.
Read More: Do All Heirs Have To Agree To Sell Property?
Choosing between a will and a trust in Georgia depends on:
A will costs less and is simpler to set up.
It’s a document that outlines who gets your assets after you die.
A will only goes into effect after your death and needs to go through probate, a court process that can take time and money.
On the other hand, a revocable living trust is a more flexible tool.
You can change it anytime during your life.
The trust holds your assets and allows a chosen person (the trustee) to manage them if you become unable to do so.
Upon your death, assets in the trust pass directly to your named beneficiaries, avoiding probate.
A revocable living trust might be better if you:
If you have fewer assets and want a simpler, cheaper plan, a will may be more suitable.
Choosing between a will and a trust also depends on your privacy preferences.
A will becomes a public document after your death when it goes through probate.
A trust, however, remains private.
Read More: Who Needs A Trust Instead Of A Will?
The cost of setting up a revocable living trust in Georgia can vary greatly.
It depends on the complexity of your assets and your particular circumstances.
For a basic trust, a lawyer might charge anywhere from $2,000 to $3,000.
More complex situations might cost $3,500 to $5,000+.
These costs cover the lawyer’s time to create the trust document and transfer assets into the trust.
In addition to the initial set-up costs, you might face yearly fees if you hire a professional trustee to manage the trust.
These fees typically depend on the value of the assets in the trust.
Also, remember there may be costs to amend the trust in the future, should your circumstances or wishes change.
Typically, these amendment fees can range from $500 to $750.
In short, the cost of a revocable living trust in Georgia depends on your unique needs and the complexity of your estate.
Expect to pay anywhere from $2,000 for a simple trust to $5,000 or more for a complex situation.
(With possible additional costs for management and amendments.)
Read More: How Much Money Do You Need To Start A Trust Fund For A Child?
In a revocable trust in Georgia, the property is technically owned by the trust itself.
The person who creates the trust, known as the grantor, usually acts as the trustee.
The grantor controls and manages the property while alive.
After the grantor’s death or if they become incapacitated, the successor trustee, who was appointed by the grantor, takes over managing the property.
The beneficiaries, which the grantor also chooses, will receive the property after the grantor’s death, as dictated by the terms of the trust.
Read More: Does Your House Have To Be Paid Off To Put It In A Trust
Here are common questions our clients ask us about Georgia revocable living trusts.
A revocable trust and an irrevocable trust serve different purposes.
So, whether one is “better” depends on your specific needs and goals.
A revocable trust allows you to maintain control over your assets.
You can change or end the trust at any time.
It helps manage your assets if you become incapacitated and after your death, avoiding probate.
An irrevocable trust, once created, can’t be changed or ended without the beneficiaries’ consent.
It offers greater protection from creditors and can be a tool for reducing estate taxes.
However, you give up control of the assets you place into an irrevocable trust.
So, if maintaining control over your assets is important to you, a revocable trust may be better.
But if protecting assets from creditors or reducing estate taxes is your goal, an irrevocable trust could be the better choice.
Read More: How To Put House In Trust With Mortgage
A revocable trust is helpful for various people:
Read More: Can I Set Up A Trust Without My Spouse?
If you want help from a Georgia trust law firm, fill out the form below.
At The Hive Law, we understand the importance of:
We only accommodate a limited number of clients each month.
So don’t miss your opportunity to work with our trust fund lawyers.
Benefits of our trust services:
Avoid the pitfalls of inadequate estate planning strategies:
Talk soon.
We run out of free consultations every month. Sign up to make sure you get your free consultation. (Free $350 value.)
Need to keep your money and property safe? We help make sure your hard-earned assets are protected. Our team knows how to create plans that guard against lawsuits and creditors. We work to keep your wealth safe for you and your family’s future.
This website is for informational purposes only. It is not legal advice. Consult an attorney if you are seeking legal advice. Check out our privacy policy.