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Estate Planning Strategies: Pros & Cons of Revocable Living Trusts

Texas living trust lawyer

In these unpredictable times, estate planning is on more people’s minds. And to provide for their loved ones, many are choosing to set up a revocable living trust.

With a revocable trust, you transfer the ownership of your assets to a trustee – and you can name yourself as the trustee. You remain in full control of your property, able to take out, sell or give away any of your assets at any time. A successor trustee of your choice will step in to manage your affairs if you become incapacitated, and upon your death, your property will be distributed to your designated beneficiaries.

Should you consider a revocable living trust? Reading the following guide to the pros and cons of this estate planning approach may help you decide.

Advantages of Living Trusts

Setting up a revocable trust could be in your best interests for several reasons. The advantages of utilizing a trust in your estate planning include:

  • The ability to manage your own assets while you are living
  • Protection of your property in the event you become unable to do so
  • Your estate can pass to your beneficiaries without the need for probate
  • The details of your estate plan will be private, not part of the public record

Disadvantages of Living Trusts

Revocable trusts may come with many benefits, but the legal arrangement isn’t without drawbacks. The disadvantages include:

  • Some assets, including IRAs, 401(k)s and jointly held property, can’t be transferred to a trust
  • Transferring the title of your assets to a trust can be costly and time-consuming
  • The assets in a revocable trust may not be beyond the reach of your creditors
  • Compared to a last will and testament, the time period to contest a revocable trust can be much longer

Is a Living Trust Right for You?

A revocable living trust can be a practical and valuable legal tool, but no single estate planning approach is right for everyone. Depending upon your personal financial situation and the types of assets you own, other legal strategies may be worthy of consideration.

An experienced estate planning attorney is your best source for advice on whether a setting up a revocable trust is the right way to protect your assets and provide you with peace of mind for the future. And the legal team at Schultz and Kellar, based in Southlake and serving clients throughout northeast Texas and the Dallas-Fort Worth metroplex area, is here to meet your needs.

To learn more about revocable living trusts – or for a free estate planning consultation – contact Schultz and Kellar today.

Categories: Estate Planning

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