Q.What are the main benefits of the Revocable Living Trust?
A.The Living Trust is a long established estate planning tool used to distribute property to named beneficiaries upon the death of its creator without the cost, expense, and time delays associated with probate proceedings and court oversight. Holding property in a living trust (revocable living trust) is very much like owning the property outright. The grantor can amend, cancel or revoke the trust at any time during his or her life. The creator of the trust typically acts as the owner (Grantor), manager (Trustee) and beneficiary thus maintaining complete control over the trust's assets. As it is difficult to transfer every asset one owns to a revocable living trust, those who choose to create a trust should also have a Pour-Over Will prepared that states that any property owned by the grantor that was mistakenly left out of the trust is to be placed into the revocable trust.
Another benefit provided by a revocable trust is its flexibility and multi-purpose uses. A revocable living trust can also be used to make arrangements in the event the grantor should become disabled, incapacitated or incompetent. The successor trustees named by the grantor will typically have the ability to manage and administer the grantor's property held in the revocable trust thus eliminating the need for guardianship, conservatorship, or durable powers of attorney.
One major myth about the revocable living trust is that it can save on Estate Taxes. This is simply FALSE.