Revocable living trust - Advantages and disadvantages

Many people use trusts as estate planning tools and a popular type of trust is the revocable living trust. This is an agreement to do what he lives for the management and distribution of your property. This type of trust offers significant advantages but also disadvantages, do not fit all. Some of the advantages and disadvantages:

ADVANTAGES

• Prevention of Probate Court: Succession is the legal procedure in which yourSummer is run when you die. It can be a long and costly process. If you transfer all your assets to the trustee before he died, all distributions of your property will be handled by the trust is not necessary for the Court of succession. This means that the distribution of its assets could be much faster and easier.

• Prevention of protection: If you are unable own affairs, so that does not care about you, and notLaunch in this situation, your family needs to go through legal proceedings to have a guardian appointed for you. If you have a living trust is properly funded revocable, the trustee has the power to manage your financial affairs for you, and you should be Able to avoid an appointed guardian.

• Privacy: If you have one, to be approved for submission to court and becomes a subject of public interest. This is not the casewith an instrument, the trust. Under normal circumstances, a trust must not be brought to justice, so that what you do with your private property.

DISADVANTAGES:

• Cost: There is a cost involved in preparing the trust document, and there are costs of transferring ownership to the trustee of the Trust Fund. Once the trust is funded, the trustees actually begins his duties in the management of the trust,and he or she is entitled to be paid for these services. It is advisable to compare the costs of establishing and maintaining trust with the benefits you get from the trust.

• potential drawback: Some types of goods such as cars and subchapter S, are difficult to manage if they are held as trust property. There are also other accounts for the maintenance of a trust. You should check with an estate planning attorney onQuestions you might ask your particular situation.

• No protection against creditors, because you can change or end of life revocable trust at any time of your life, the trust property are not protected against creditors. Once you die, the trust property does not pass through the Court of succession. If you're concerned about its creditors, it can be a disadvantage. According to the law of succession, creditors have the time for appeal against an estate. If you miss the deadline, they loseRight to collect the debt forever.

Revocable living trust is not one-size-fits-all solution for estate planning. There is one option among others to discuss with your estate planning attorney.