Is a Revocable Living Trust Right for You?
A revocable living trust (“RLT”), like a Will, is another vehicle for passing your property at death. It also allows you to manage your property during life and plan for certain contingencies, like incapacity, by appointing successor Trustees who are able to assume control of the trust assets in a seamless manner when the need arises. While you still need a Will (referred to as a “pourover” Will) to capture any property that you may have failed to fund the trust with before death, your family may not need to go through the formal probate process if the RLT is funded correctly. Unlike other trusts, namely most irrevocable trusts, a RLT does not afford you any creditor protection during your life. It is simply another way to title your assets so that those assets will pass to your named beneficiaries at your death or allow a successor trustee to manage the assets while you are alive, but incapacitated.
Why would you choose a RLT as your dispositive document over a Will?
- You own real property in a state where probate laws are costly and lengthy.
- You plan to disinherit a child or spouse.
- You are planning for incapacity.
- You like the idea of privacy.
- You just like the idea of having all of your assets in one “place” for management purposes.