The Advantages of Planning with Revocable Trusts

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The Advantages of a Revocable Trust-Based Estate Plan

While a Last Will and Testament is a foundational document, a Revocable Living Trust offers a more powerful and flexible set of advantages for many families. A trust-based plan can provide greater control, privacy, and protection than a will alone can achieve.

Benefit #1: Privacy and Avoiding Probate

This is one of the most significant advantages of a trust. A will must go through the court process of probate, making it a public record. This means anyone can see the details of your estate, including who your beneficiaries are and what they inherited. A trust, on the other hand, is a private contract. The entire process of administering the trust happens privately, saving your family from the high court costs, delays, and public scrutiny of probate.

Benefit #2: Seamless Management of Multi-State Property

If you own real estate in more than one state, a will-based plan will require your family to go through a separate, costly probate process in each state where you own property. By placing all your real estate into a single Revocable Living Trust, you can avoid this multi-state probate nightmare, saving your family significant time and money.

Benefit #3: Greater Control for Complex Family Situations

A trust provides a level of control and customization that is ideal for modern families. It is a powerful tool for:

  • Protecting a beneficiary with special needs without jeopardizing their government benefits.
  • Managing an inheritance for a loved one who struggles with addiction or poor financial habits.
  • Ensuring fairness and clarity in blended family situations.
  • Protecting a child’s inheritance from a potential future divorce.

Benefit #4: Asset Protection for Your Beneficiaries

While a Revocable Trust does not protect your assets from your own creditors during your lifetime, it becomes a powerful asset protection tool for your beneficiaries after your death. When you leave an inheritance to your spouse or children in a continuing trust, those assets can be shielded from their potential future creditors, lawsuits, or a divorce.

Benefit #5: Preventing Will Contests

Wills can be challenged in court for a variety of reasons. To discourage this, a well-drafted trust can include a “no-contest” clause. This provision typically states that if a beneficiary challenges the validity of the trust and loses, they will be disinherited and receive nothing from the estate.

Is a Trust-Based Plan Right for You?

A Revocable Living Trust is a cornerstone of a comprehensive asset protection plan for many families. It provides a level of control, privacy, and protection that a simple will cannot match.

If you have questions about revocable trust-based planning, our experienced attorneys can help. Call our office at (919) 256-7000 to schedule a consultation.