What Are the Advantages of a Revocable Living Trust?
In establishing your living trust, you are essentially transferring your assets to the ownership of the trust. Then, upon your unfortunate passing, your assigned trustee may distribute these assets to your designated beneficiaries. This may be a tough concept to grasp at first, but it should not force you to shy away from considering it. This is because many benefits come with adding this tool to your estate plan. Follow along to find out the key advantages of establishing a revocable living trust and how one of the proficient Butler County trust attorneys at Heritage Elder Law & Estate Planning, LLC can help you maximize its functionalities.
What are the key advantages of a revocable living trust?
There are two different types of living trust that you may choose to establish; namely a revocable living trust and an irrevocable living trust. Particularly with a revocable living trust, you may maintain greater flexibility and control over it throughout your lifetime. Other key advantages that this trust type holds are as follows:
- A revocable living trust may reduce the overall value of your estate to avoid federal estate taxes.
- A revocable living trust may allow your designated beneficiaries to avoid the timely and costly probate process.
- A revocable living trust may allow you to avoid court interference should you become too incapacitated to handle your affairs.
- A revocable living trust may allow your assets to be protected should civil lawsuits be placed against you or should you ever get a divorce.
- A revocable living trust may allow your designated beneficiaries to receive their inheritances once they reach a mature age or the age in which you instructed.
What are some disadvantages of a revocable living trust that I must consider?
There are many more benefits to a revocable living trust than what was mentioned above. However, on the flip side, you must equally consider its potential drawbacks. More specific examples are as follows:
- A revocable living trust may not come with direct tax benefits.
- A revocable living trust may initially come with higher costs than a will.
- A revocable living trust may require you to pay your assigned trustee for their services.
- A revocable living trust may not protect you from the collection activities of your creditors.
- A revocable living trust may not guarantee your assets will be inherited as you instructed if you do not update their title documents.
The bottom line is that the advantages and disadvantages of a revocable living trust may carry a different weight for each grantor. So you must look intently at your financial portfolio and overall estate plan to determine what your move should be. Whenever you are ready, one of the talented Butler County estate planning attorneys is here to assist you. Please schedule your initial consultation with us at Heritage Elder Law & Estate Planning, LLC.
