To many, the revocable living trust looks a lot like a will because it includes the details and instructions for how you want your estate to be handled at your death, and it appoints a successor who will be in charge of your estate upon your death. But unlike a will, a properly funded trust provides the following benefits:
Flexibility and Control – As the “Trustor,” “Trustee” and the lifetime “Beneficiary” of your own trust, you retain full and complete control over all your assets during your lifetime. Upon your death, the assets in the trust are managed and distributed according to your desires written in the trust document. Each family has its own particular needs, and your trust should be designed and customized to meet those needs. The revocable living trust gives you control over the assets you leave to your minor children, grandchildren or other beneficiaries who you might not want to receive their inheritance right away (including special needs beneficiaries or financially irresponsible beneficiaries).
Avoidance of Probate – Assets titled in the name of the revocable living trust at the date of death are not subject to probate administration. This avoids thousands of dollars in executor fees and attorneys’ fees, not to mention a possible one or two-year delay for your family while the estate assets are tied up in probate.
Planning for Incapacity – If you become disabled or simply desire to be free of the worries of day-to-day asset management, the revocable living trust designates a “Successor Trustee” who can step in to manage your financial affairs without the necessity of going to court to have a conservator appointed (which is, again, a very costly, public and slow process).
Continuity of Asset Management Upon Death – Upon your death (or the death of the surviving spouse), the Successor Trustee automatically steps in and begins to manage the estate without the delay or “red tape” associated with probated estates.
Privacy – Revocable living trusts offer privacy as to who inherits the estate, when they receive it and how much they receive.