Many people in Arkansas and across the country have hesitations when it comes to making decisions that could be permanent. This feeling is understandable as people commonly change their minds. As a result, some people may hesitate before using trusts as part of their estate plans. However, this tool does not have to be permanent.
If individuals are concerned that they will change their minds regarding the details of a trust, they may want to utilize a revocable trust rather than an irrevocable trust. A revocable trust can be changed or canceled at any time. This means that if, for example, a person creates a trust to benefit a loved one and then has a falling out with the loved one, the trust can be changed to no longer benefit that person.
Though a revocable trust can be changed or canceled, it is still important that individuals have a solid idea of what they want their trust to achieve. Making choices on a whim is not advisable when creating a revocable trust, so having an inventory of assets, listing intended beneficiaries and having an intended trustee can help. It may also be important to remember that the trust maker can act as the trustee of the revocable trust until his or her passing.
Having the wrong idea about how trusts can be used can easily prevent Arkansas residents from taking advantage of this planning tool. Instead of going by hearsay, individuals may want to ensure that they do their proper research before making any decisions regarding their estate plans. Discussing the various tools available with knowledgeable attorneys may help parties gain accurate information.