Solutions from a Woodlands Estate Planning Attorney
Many families are choosing revocable trusts as a form of estate planning. A revocable trust, also known as “living trusts” are used similarly as a Last Will and Testament, a document that lays out a loved one’s wishes on the distribution of wealth and assets following their death. The revocable trust is a container for assets, allowing an individual to move assets from under his or her name to the trust.
What Are the Advantages of a Revocable Trust?
The primary advantage of a revocable trust is that if used properly, it can enable the individual to avoid probate. In Texas, most people will use a Last Will and Testament rather than a revocable trust. However, in some cases revocable trusts are a better tool for distributing your estate.
The advantages of a revocable trust include:
- Avoiding probate – this is especially important if you have real estate in multiple states. Probate applies where the property is located; a revocable trust can help avoid probate in each state in which the decedent owned property.
- Confidentiality – the disposition of your estate will remain private, not public record. In contrast, a Last Will and Testament becomes public record during the probate process.
- Less costly and time-saving when estate is distributed. A revocable trust avoids many of the steps required for probate.
- Trust can be revoked and amended at any time while the creator is living
Bear in mind that revocable trusts offer these and many more benefits. However, one of the largest disadvantages is that it can be costly to fund the trust at first. Also, it can be time-consuming to retitle the assets and reassign them to the trusts. It can be difficult to fund the trust with all of the assets, and those left behind could be left to be resolved in probate. By finding legal counsel from our Woodlands estate planning attorney, you can have a clearer idea of what to expect.