Benefits of revocable trusts
Our revocable trust-based plans are our most popular estate plans. Revocable trusts are generally the tool of choice for our clients who wish to avoid probate and make settlement of their estate as simple as possible for their beneficiaries.
Because revocable trusts avoid probate, they have the following benefits:
Lower settlement costs. We recommend that estate administrators still hire an attorney to assist with trust settlement. However, the costs are lower, since no court work is necessary.
Privacy. Only the beneficiaries of a trust need to know how assets are distributed or even that the trust exists. In a probate settlement, family members who are not included in the will may need to receive notice of that fact and a copy of the will. The will and other court documents are also available to the public.
Faster settlement. In a probate settlement, the court must sign off on appointment of a personal representative before any work can be done in the estate. Depending on the situation, this typically takes 2-6 weeks, and sometimes longer if a beneficiary objects. In a trust settlement, settlement work can begin as soon as the trustee is ready to start.
Avoid multi-state issues. For clients who have real estate in multiple states, trust-based plans avoid the possibility of court action in more than one state.
Trusts are not for everyone
Although revocable trust-based planning is often a best practice, it is not for everyone. For trusts to work as intended, it is necessary to connect all assets to the trust or name individual beneficiaries when appropriate. This can include:
Recording deeds for all real estate, including real estate in other states.
Updating beneficiaries on bank accounts to ensure they flow into the trust at death.
Updating beneficiaries on retirement accounts to ensure they flow as intended.
Updating corporate documents to ensure any business assets flow into the trust.
Titling vehicles in the trust.
In our office, we work directly with our clients and their financial advisors to ensure this funding work is completed properly. This adds to the work involved in the plan, both for us and for our clients.
For this reason, revocable trust-based planning is not for everyone. If clients are not committed to doing this work, we recommend will-based planning instead. Similarly, solid will-based planning is generally our recommendation for young families whose primary needs are naming guardians and providing for young children rather than probate avoidance.
choosing the right plan
Our goal is to find the right choice for each client. As with all of our planning, revocable trust-based plans start with a no obligation consultation with an attorney. To get started, call our office to schedule your consultation. We look forward to working with you!