What are the benefits of a Revocable Living Trust over a Will?
They are many. Most of us would find plenty of benefit that would make a living trust the best option for us to transfer our property, wealth, and otherwise settle our estates at death. A Revocable Living Trust plan is not that much more expensive than a will-based plan. They will save you money, time, and frustration in the long-run.
Let’s quickly review the major benefits that you should consider:
- Avoid Probate! – This is probably the best feature of the Revocable Living Trust (RLT for short). Probate can be very expensive, complex and time consuming.
- The RLT provides maximum privacy. If your estate goes through probate, this is a court-driven process. As such, it is a public administration of your estate. Outsiders will be able to see that your estate is a lucrative one, and it invites scrutiny and sometimes challenges to your will. An RLT pretty much eliminates all of this and keeps your estate, its beneficiaries, and its contents private.
- Simpler and much quicker distribution of assets to your beneficiaries, per your instructions, than with a will. No court control or oversight.
- You can dictate when the assets in trust are distributed. They can stay in trust for years after you’ve passed if this is your wish; keep control of assets until you want the inheritance distributed on your terms – when your beneficiaries are mature enough to manage them properly.
- The RLT can be a foundation for extensive tax planning, and it can be used to reduce or eliminate estate and gift taxes.
- Prevents the court becoming involved in your financial affairs upon incapacity.
- Prevents the court controlling a minor’s inheritance.
- Prevents the disinheritance of your children if you are the first spouse to die.
- Protect assets from creditors after you have passed; assure that only your children (and their children) inherit your estate – not a divorcing spouse of your children.
- Can be used to protect beneficiaries with special needs.
- An RLT can be difficult to contest.
- Access to professional management with a corporate trustee is easy to set up.
- Can be inexpensive, easy to set up and maintain.
- Easy to change or cancel at any time. Never lose control of your assets.
- Have peace of mind so you can sleep soundly at night.
If some or all of these benefits sound good to you, and you’d like to upgrade your estate plan to one with a Revocable Living Trust at it’s foundation –> call Westward LAW PLLC to set up time for an initial consultation. We look forward to speaking with you! 360.899.5468