As we all try to stay above water in the current economy, we’re looking for ways to save money and some prospective clients have asked: “Is a revocable living trust worth the money?” Only you can decide for yourself. There is no right or wrong answer.
It is more expensive to set up a revocable living trust than to create a simple will. But, what does a simple will do? Not much. At least not much when compared to a trust.
Don’t get me wrong, a will is imperative. Everyone age 18 or older needs his or her own will. You appoint guardians for minor children in a will, appoint an executor, and direct who will divide your assets upon your death. That’s about it.
A revocable living trust can:
- Save money and time while keeping your affairs private by avoiding probate.
- Protect your beneficiaries’ inheritance from spendthrifts, creditors, and predators.
- Help you avoid disinheriting special needs beneficiaries.
- Prevent your assets from fueling a beneficiaries’ alcohol, drug, or gambling addiction.
- Include a trust share for your beloved pets.
- Encourage your loved ones as you would if you were alive.
- Provide successor trustees to follow trust instructions and manage your affairs if you become disabled or die.
- Keep the court out of your finances, family, personal businesses, and bank account.
- Minimize federal estate tax for married trust makers.
- Provide for your favorite charity.
Your revocable living trust is the center of the estate plan. It works in conjunction with your will, which is a “pour-over will.” The pour-over-will’s only beneficiary is your trust.
Other necessary and basic estate planning documents that work with your revocable living trust are: the general durable (financial) power of attorney, health care power of attorney, HIPAA release, and living will.
John’s practice focuses on the use of Wills and Living Trusts in Estate Planning to help individuals protect their families and preserve their legacies after their deaths, but his practice also focuses on the critical issues of protecting individuals with dementia or other diminished capacity, assisting individuals in qualifying for Medicaid and other government benefits to offset the costs of long-term care, and providing special needs planning.
John is admitted to practice law in North Carolina, South Carolina, Kentucky, and Ohio, and he is accredited by the Department of Veterans Affairs.
- What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
- How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
- Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022
