Many people consider creating a revocable living trust when handling their estate planning affairs. Before creating this trust, it’s important to understand both the advantages and disadvantages. We’ve taken the time to outline these points, below. If you have any questions, or if you’d like to create a revocable living trust, meet with an estate planning attorney to discuss your needs.
A revocable living trust can have its advantages…
- You’re able to have full control over the trust during your lifetime, so long as you have capacity
- You can always make changes to the trust’s terms, so long as you have capacity
- You can keep some of your assets out of the probate process, so long as assets are funded into your trust
- You can plan for the management of your trust in the event of incapacity
- You can control how your assets will be managed and distributed
- You can include pet planning, tax planning, charitable planning, special needs planning, legacy planning, blood line protection planning, remarriage protection, and asset protection planning in your trust.
A revocable living trust does have some disadvantages…
- It can be costly to set up a trust
- In order for your trust to work correctly, each asset must be correctly funded (titled in the name of the trust)
- If you use a professional trustee (which is unusual), the fees could be costly
Carefully discuss the use of a revocable living trust with your attorney. This will allow you to better understand its uses, as well as determine if this is a good option for your plan.
If you have any questions, or if you’d like to create a revocable living trust, consult with a qualified estate planning attorney.
Michael Robinson, Estate Planning Attorney
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