A revocable living trust is one of the most popular estate planning tools. You keep control of your property during your lifetime, a person you choose can step in if you can’t manage your affairs, and at your death your property can pass to your loved ones without going through probate.
How a living trust works
In general, you create the trust and usually serve as your own trustee, keeping full control of your property. You can change or revoke the trust at any time. If you become unable to manage your affairs, a successor trustee you’ve chosen takes over. At your death, that trustee distributes your property according to your wishes, privately and without a court proceeding.
Why choose a trust?
- Avoiding probate. Probate can take months, involves court filings and fees, and creates a public record. Trust administration is usually faster and private.
- Planning for incapacity. Your successor trustee can step in without a court-supervised guardianship.
- Property in other states. A trust can help avoid a second probate in another state where you own property.
- Control over how and when. A trust can hold an inheritance for young adults, protect a loved one with a disability through a special needs trust, or help protect a child’s inheritance.
What a living trust doesn’t do
A revocable trust does not protect your assets from nursing home costs or from your own creditors, because you can take the assets back at any time. For long-term care concerns, see Medicaid asset protection trusts. A trust also doesn’t replace your durable power of attorney, which covers matters outside the trust.
Specific legal requirements, and why they matter
Revocable trusts have highly specific legal requirements and important implications for your home, your taxes, and your family. A trust also works only if your assets are properly transferred into it; an unfunded or improperly prepared trust can leave your family in probate anyway.
Our attorneys are experienced at drafting revocable living trusts to the correct legal specifications, tailoring each one to fit your needs, and helping make sure the trust is properly funded. We also help successor trustees carry out their responsibilities.
Will or trust?
A will is simpler but leads to probate. A trust involves more up front but usually saves time, cost, and stress later. Married couples with appreciated assets may also want to ask about a Florida community property trust. We help clients decide which approach fits.
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This article provides general information only. It is not legal advice, and reading it does not create an attorney-client relationship. Every situation is different; please consult an attorney about yours.