The Benefits and Drawbacks of Revocable Trusts

There are many legal tools that can help you plan your estate. One of the most popular of these are removable trusts. When you establish a revocable trust, you transfer property into it. This essentially involves transferring ownership from you to the trust. You still control the property during your lifetime and after you pass away, the property is distributed according to your instructions within the document. Revocable trusts have many benefits, but they can also have certain drawbacks. Below, our New Port Richey trusts lawyer explains what these are.

The Benefits of Revocable Trusts

Many people think they only need to establish a revocable trust if they have a large estate, but this is not necessarily true. Even those with modest estates can benefit from a trust. The main benefits are as follows:

• Probate avoidance: Once you transfer ownership of property to the name of the trust, you no longer legally own it. After you pass away, the trust is then considered a separate legal entity from your estate. As such, the property in the trust does not have to go through probate and can be distributed to your heirs right away. Many people want to help their loved ones avoid probate because the process is costly and time-consuming.
• Flexibility: Revocable trusts are very flexible. Even after placing property into the trust, you still have full control over it during your lifetime. If your circumstances change and the trust no longer serves its purpose, you can even terminate the trust.
• Asset management: A revocable trust allows you to determine how you want your assets managed after you pass away. For example, you may want to leave an inheritance to a family member who may not use it responsibly. You can include a spendthrift provision to ensure they do not waste their inheritance.
• More challenging to contest: The grounds for contesting a trust are essentially the same as contesting a will. However, the probate courts do not get involved with trusts and so, challenging these documents is much more difficult and expensive.

The Drawbacks of Revocable Trusts

In addition to their benefits, revocable trusts do have some drawbacks, as well. These include:

• Expense: Establishing a trust is a bit more expensive than simply writing a will. Although this can help your loved ones save on probate costs after you pass away, you may want to reconsider if you do not have a large amount of assets.
• Additional steps: When you write a will, the task is generally done once it is executed. After establishing a trust, though, you must also fund it which requires you to transfer titles, open new bank accounts, and more. While inconvenient, if you do not take these steps, the trust will not function as intended.
• Issues with the trustee: The trustee is the person who will distribute the property in the trust after you pass away. If other loved ones feel as though the trustee is breaching their fiduciary duty or otherwise acting inappropriately, they may attempt to remove them. The property in the trust may be needed to defend this action.

Call Our Trusts Lawyer in New Port Richey Today

There are many advantages and drawbacks that come with revocable trusts. At Messina Law Group, P.A., our New Port Richey trusts lawyer can help you determine if these legal tools are right for you and if so, execute it properly so you and your loved ones can reap the many benefits they offer. Call us today at (813) 492-7798 or contact us online to schedule a consultation and to get the legal advice you need.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html