A revocable living agreement is a legal document that serves as a part of an individual`s estate plan. This document is created to outline the individual`s wishes regarding the administration and distribution of their assets. As the name suggests, the document is revocable, meaning that it can be amended or revoked by the individual as necessary.
The primary purpose of a revocable living agreement is to ensure that the individual`s assets are distributed according to their wishes after they pass away. The document typically includes instructions on how the individual`s assets should be distributed, who should receive them, and how they should be managed.
One of the primary benefits of a revocable living agreement is that it allows the individual to avoid probate. Probate is a legal process that occurs after a person passes away. During probate, the court oversees the distribution of the individual`s assets and makes sure that all debts and taxes are paid. This process can be time-consuming and expensive and can delay the distribution of assets to heirs.
By creating a revocable living agreement, the individual can bypass the probate process altogether. This can save time and money and can ensure that the individual`s assets are distributed more quickly and efficiently.
Another benefit of a revocable living agreement is that it can help to protect the individual`s assets in the event that they become incapacitated. The document can include instructions on how the individual`s assets should be managed if they are unable to make decisions for themselves. This can be particularly important in cases where the individual has significant assets or a complex estate.
Overall, a revocable living agreement can be an essential part of an individual`s estate plan. By creating this document, individuals can ensure that their assets are distributed according to their wishes and can avoid the probate process. Anyone who is considering creating a revocable living agreement should consult with an experienced attorney to ensure that their wishes are properly documented and that their assets are protected.