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Revocable Trust
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Revocable Trusts are legal documents created during one’s lifetime. Assets are transferred into the name of the Trust. As the creator of the Trust (a.k.a. the grantor), you maintain complete control of the assets during your lifetime. You can change the Trust or cancel it completely at any time. Upon your death the assets are distributed privately according to the terms of the Trust, avoiding probate.

(+)  Advantages of a Revocable Trust:

  • Avoids probate, saving time and money
  • Helps ensure privacy
  • Minimizes potential conflicts in distributing assets
  • Easier transition in cases of incapacitation

(-)  Disadvantages of a Revocable Trust:

  • Costs and time associated with drafting the Trust and transferring assets
  • Avoids probate only if all assets are re-titled into the name of the Trust

Caution! Revocable Trusts may work better in theory than practice. Failing to title just one asset in the name of Trust means that your estate will go through probate.

While Revocable Trusts are not necessary for everyone, they can be useful in the following situations:

  • Your state of residency has a difficult or expensive probate process
  • You own real property in more than one state and will have to go through probate in each state
  • You anticipate that your Will might be contested
  • You have a higher need for privacy
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