Is A Revocable Living Trust Actually Worth It?
Many people opt to include a revocable living trust as part of their estate plan. A revocable trust can offer some tangible benefits over a will. Still, it is not the right estate planning tool for every situation. If you are considering setting up a revocable living trust, it is useful to know the benefits and the drawbacks. At Fisher Law LLC, we help people and families implement the most effective estate planning strategy. Here, our Norwood trust attorney highlights the advantages of setting up a revocable living trust in Massachusetts.
The Advantages of a Revocable Living Trust
Advantage: Continuity During Incapacity
A revocable trust provides a built-in mechanism for incapacity. If the settlor becomes unable to manage finances, the named successor trustee can act without a guardianship or conservatorship proceeding. In other words, a revocable living trust can be helpful during the stress and challenges of incapacity. It is important to remember that incapacity planning is a key part of estate planning.
Advantage: Avoid Probate
Probate in Massachusetts can be a long, complicated, and even frustrating process. Assets that are properly placed within a revocable living trust will avoid the probate process. If probate avoidance is a goal, a revocable living trust can be a very effective estate planning tool. A Massachusetts estate planning lawyer can help you put the right structure in place for your specific situation.
Advantage: Privacy
In Massachusetts, probate is a public process. On the other hand, trust administration generally occurs outside of the public probate docket. The terms of the trust, the asset inventory, and the distribution plan are not filed as public records in the same way as a will. If you have any questions about privacy options, an experienced Massachusetts estate planning lawyer can help.
The Disadvantages of a Revocable Living Trust
Disadvantage: Upfront Costs
A trust requires more work at the front end than a simple will. The document must be drafted carefully, then funded by retitling assets into the trust. Real estate deeds, bank and brokerage accounts, and business interests all require coordination. The work does not end after signing. New assets must be titled to the trust to ensure that it works properly.
Disadvantage: No Asset Protection
There are many different types of trusts that offer asset protection as an advantage. However, these trusts are irrevocable trusts. A revocable living trust, while the right choice for many, does not offer much in the way of asset protection. Indeed, it is simply the wrong estate planning vehicle to use if asset protection is your purpose.
Call Our Norwood, MA Trust Planning Lawyer Today
At Fisher Law LLC, our Massachusetts trust planning attorney has the knowledge and experience that people and families can rely on. If you have any questions about revocable living trusts, we can help. Contact us today for a fully confidential consultation. It is our mission to put clients first. We handle trust planning in Norwood and throughout the Greater Boston area.
