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What are the Benefits of a Revocable Living Trust?

Posted on 08 Jun 2011 by admin | Filled under: uncategorized

If you're looking into putting together an estate plan, you may have heard about Revocable Living Trusts. You might be wondering what all the fuss is about. A Revocable Living Trust is an effective estate planning tool for many people. Here are the main benefits:

Avoidance of Probate. Your estate only has to go through the probate process if you die owning property in your name. With a fully funded Revocable Living Trust, all of your property actually belongs to your Trustee, who holds the property for your benefit and manages it according to your instructions. This means that, assuming all of your property has been transferred to your Trustee, there will be no property subject to probate upon your death.

Incapacity Planning. You can use your Revocable Living Trust to appoint a Disability Trustee to manage your trust property in the event that you become mentally disabled and can't handle your own affairs. The benefit to this is that you avoid having to go through a court proceeding to have a guardian or conservator (not necessarily of your choosing) appointed to manage your affairs. With a Revocable Living Trust, you choose who is in control of your assets, and you get to keep your private affairs private.

Privacy. Assuming that your Revocable Living Trust is fully funded when you pass away, there will be no need for probate proceedings. This means that your Will won't be filed in court, where it becomes a matter of public record.

Flexibility. You can change the terms of your Revocable Living Trust at any time. You can even cancel the trust altogether and take your property back. So long as you're mentally sound, there's no limit to the changes you can make to your trust. So, until the time you either die or become incapacitated, you retain complete control.

While there are many benefits to having a Revocable Living Trust, there are some drawbacks, and some things this type of trust simply can't accomplish for you. To make sure your estate plan does exactly what you need it to, it's best to work with a qualified estate planning attorney.