Revocable living trusts are popular estate planning tools that can be used to achieve a variety of short-term and long-term planning goals. With that said, they aren’t necessarily right for every scenario. While revocable living trusts offer several benefits, they are subject to certain limitations, which makes it important to carefully consider all available options when putting an estate plan in place. Learn more from an experienced Vineland estate planning attorney:
The Benefits of Including a Revocable Living Trust in Your Estate Plan
A revocable living trust is an estate-planning tool that can be used alongside other estate-planning documents to protect your assets and your loved ones. While a revocable living trust can serve many of the same purposes as a will, there are several reasons to consider using a revocable living trust to manage the bulk of your estate instead of relying on a will alone.
Some of the key benefits of including a revocable living trust in your estate plan include:
Additional Control
Revocable living trusts provide greater control than a will. When you establish a revocable living trust, not only can you specify how your assets should be distributed at the time of your death, but you can also do things like:
- Appoint a trustee to manage your assets for the benefit of your estate after your passing;
- Provide specific guidance regarding the long-term management and safekeeping of important assets; and,
- Specify the timing of distributions to your minor children and implement additional safeguards.
These can all be important for various reasons, and when putting together an estate plan, one of the keys is to ensure you make informed decisions based on a clear, comprehensive understanding of all the options available to you. For many people, working with an experienced Vineland estate planning attorney to create a custom-tailored revocable living trust will enable them to achieve most—if not all—of their estate planning goals.
Additional Flexibility
Along with providing additional control, revocable living trusts also provide additional flexibility. This includes additional flexibility with regard to both: (i) the terms and protections you put in place; and (ii) modifying the terms and protections you have put in place over time.
The revocability of a living trust is a key feature. Since you can revoke a living trust in its entirety, you can also make any changes you see fit. Whether your family or financial circumstances change, or you simply find yourself with different priorities in the future, having a revocable living trust in place will provide the flexibility you need.
Helping Your Family Avoid Probate
Another key benefit of incorporating a revocable living trust into your estate plan is that it will help your family avoid probate. Probate is the formal process of administering a person’s estate in court, and it is required when distributing a person’s assets pursuant to a will. Probate can be both time-consuming and expensive, and in many cases, it can lead to disputes among family members (and other interested parties).
Revocable living trusts are not subject to probate. As a result, if you use a revocable living trust as the primary tool for distributing your assets after your death, you will save your loved ones time, costs, and stress. This alone will be reason enough to create a revocable living trust in many cases.
Protecting Your Family’s Privacy
Avoiding probate will also help protect your family’s privacy. Since probate is a judicial process, filings in probate generally become part of the public record. Regardless of whether you have specific privacy concerns, making sure that the details of your estate do not become public can be an important consideration as well.
Avoiding Uncertainty
Ultimately, incorporating a revocable living trust into your estate plan can help you avoid uncertainty—both for yourself and your family. While incorporating a revocable living trust into your estate plan is not the only way to avoid uncertainty, the many benefits revocable living trusts offer make this an option well worth considering. Creating a revocable living trust is not particularly expensive, and in the long term, helping your loved ones avoid the costs and complications that can result from not having one can be well worth the investment.
Understanding the Limitations of Revocable Living Trusts
So, those are some of the main benefits of creating a revocable living trust. Now, what are the limitations?
As we said above, while revocable living trusts offer several benefits, they aren’t necessarily the right choice in all circumstances. For example, a revocable living trust might not be the right tool for addressing estate planning considerations such as:
- Making sizable charitable donations
- Preserving your loved ones’ Medicaid eligibility
- Transferring ownership of your primary residence or vacation home
Revocable trusts also can’t be used to address things like financial management and healthcare decision-making during your lifetime (including decisions regarding end-of-life care). For these, other tools are available and using them in conjunction with a revocable living trust can be essential for providing your loved ones with the guidance they need for the future.
What Other Estate Planning Tools Are Available?
Along with a revocable living trust, a comprehensive estate plan may involve using various other documents designed to achieve specific planning goals. While revocable living trusts provide broad planning options, the following types of estate planning tools can be used to achieve specific objectives:
- Living wills and healthcare directives
- Powers of attorney
- Charitable trusts
- Family foundations
- Irrevocable asset protection trusts
- Qualified personal residence trusts
These are just examples. An experienced Vineland estate planning attorney can help you consider all of your options. If you have questions about putting an estate plan in place, we invite you to contact us for more information.
Discuss Your Options with an Experienced Vineland Estate Planning Attorney
To discuss your options with an experienced Vineland estate planning attorney, contact us today. Call 877-435-6371 or tell us how we can help online to schedule a confidential initial consultation at Helmer, Conley & Kasselman, P.A.