ADVANTAGES OF A REVOCABLE TRUST

What are the Advantages of a Revocable Trust? Is a "Lifetime" or Revocable Trust for You? 

In certain, but not all, situations, it may make sense to create and fund a "lifetime" or revocable trust. There are certainly advantages of a revocable trust. Below are a few factors you should consider in determining whether such a trust makes sense for you. 

Advantages of a Revocable Trust-Avoid Court Meddling:

One of the primary advantages of a revocable trust is that the courts are typically not involved with lifetime trusts. Many people desire to avoid court intervention in the distribution and division of their assets. Establishing a "lifetime" (or revocable) trust may eliminate the need for court intervention.

Note that certain counties may require you to disclose the existence of a revocable trust in the event that you ultimately file for probate. Although you may have to disclose the trust, you will not need to obtain "Letters of Trusteeship" for the trust. Not having to obtain separate "Letters of Trusteeship" eliminates court oversight and reduces administrative burdens. 

Ease of Administration:

Having a "lifetime" trust allows you to place assets regardless of size and location into the trust, thereby creating one general operating base. One of the primary advantages to a revocable trust is that you will not need to go to each state and obtain authority to act as a fiduciary in that state. 

Direct Distribution of your Assets:

When you place beneficiary designations on assets or create joint accounts, you are directing that the entire asset pass, all at once, to the person you have designated. Under such an approach,,you are not able to control or temper distributions. If you create a trust, however, you may direct that a portion of the funds be held back or delayed or kept in further trust upon the occurrence of a certain event.. 

Create Flexibility for Future Planning:

Another advantage to a revocable trust is the ability to plan for disability or incapacity.

First, by creating a trust,you may be able to provide a smooth succession plan for the management of your assets by specifying, in your trust, who would prefer to handle the finances in the event of your disability.

This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship. 

For more information on this and other topics, please contact Kevin via any of the channels listed below:

📧 kevin@kmckernan.com  | 📞 718-317-5007