Revocable trusts can help individuals manage their estate while they are alive and provide distribution directions applicable after their death. It is a widely used option, especially among individuals with health conditions that cause impairments or disabilities. A revocable trust usually involves a trustee who oversees the assets during their owner’s incapacity and after they pass on.
However, this option can only benefit specific individuals with appropriate circumstances. Establishing a revocable trust could have the following advantages:
- They could be alternatives to the probate process. Some estates could contain complicated assets that might pose challenges during the probate process. Depending on the estate’s details, revocable trusts could avoid or minimize the chances of undergoing this process.
- They provide a more straightforward approach to managing properties in multiple states. These real estate assets usually go through ancillary probate.
- These trusts can resolve asset management issues for incapacitated individuals. Other legal options can provide the same benefit, but the revocable trust functions of a trustee can carry over after death.
- Their details remain private. Tools like wills typically go on public record, revealing potentially sensitive legal information and details of the estate.
However, this type of trust could lead to extensive costs and complex procedures. It is vital to determine whether a revocable trust is worth the trouble before spending any amount to set it up.
Revocable trusts are not for everyone
There is often a misconception that these trusts can yield benefits to anyone. However, this is misleading. Sometimes, the costs and effort necessary for a trust outweigh its benefits. It might only be advantageous based on the individual’s needs and circumstances. Fortunately, interested individuals can consult attorneys and advisers specializing in estate planning to help review their options before deciding.