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Revocable Living Trust Offers Many Benefits

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How is a revocable living trust different than a will?

Most people believe a will is all that is needed for estate planning. Unfortunately, many think after a loved one has passed away the will is going to transfer the assets to the designated beneficiaries. The problem is a will must go through Probate.

Probate is the process of validating and authenticating the will. This is done by our court system, by a judge. As we all know the court system moves very slowly and can be expensive. For example, the average time it takes a will to go through probate can range from six months to two years. Ouch! Then you have the legal expenses which can run thousands of dollars.

So here is where with a revocable living trust, your loved ones can AVOID probate completely! Therefore, the beneficiaries have immediate access to the estate's assets and they are not required to pay additional legal expenses. Sweet!

After losing my father unexpectedly last September, my mom benefited greatly thanks to my dad's due diligence. The pain of losing a family member is hard enough, without having to wait for the courts to disperse the assets.

THANKS DAD

Where do you go to set up a revocable living trust?

Do you go to a financial planner, a CPA, or your attorney? Ten years ago when we decided to have a revocable living trust drawn up we opted to see our family attorney. He practices general law and is not a specialist in trust agreements. He explained it was a pretty straight forward process and he was happy to create the document.

My guess is the cost of preparing a revocable living trust varies from state to state. We paid $500.00 for his services. Remember that was ten years ago, today with our internet sources such as legalzoom and many others it could be less expensive. Personally, I preferred dealing with a profession face to face so we avoid mistakes.

What is the difference between a revocable living trust and an irrevocable living trust?

As the name implies a revocable living trust gives you the trustee the ability to change the content of the document at anytime. Such as beneficiaries, guardianship, and whatever else applies. Life is ever changing, so you want the freedom to make changes to your trust.

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You have your revocable living trust, now you need to have your personal assets transfer into the trust.

I know it sounds like a pain in the rear. Granted, will take some time and energy to complete this task, but I assure you that it is time well spent. Remember you are not doing this for yourself; this is for your family!

First, I would suggest you go to your bank and convert accounts such as checking, saving, money markets, certificate of deposit, and any other financial assets. You will need to bring your trust agreement with you. Your banker may have a blank look on his or her face, since they may never have run into this situation. Don't worry. Their manager will know what to do or who to ask.

Other assets such as car titles, boat titles, motorcycle titles, and the deed to your home all need to be transferred into the name of the revocable living trust. For example, Bill's car title is in Bill and Betty Wilson's name. The corrected title will now read in the name of the trust. Such as, Bill Wilson & Betty Wilson Living Trust. The house deed can be changed by contacting your state's county assessor's office.

The only financial asset that cannot be put into your revocable living trust is IRAS.

Regarding a Revocable Living Trust.

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Feedback/Comments for my lens

  • Bogey Aug 31, 2009 @ 7:04 pm | in reply to Aunt Weezie | delete
    I agree - This has some very useful information. Lots of research involved and experienced it first hand. Five more stars!
  • Aunt Weezie Aug 23, 2009 @ 4:31 pm | delete
    Your information is a quick guide for someone ready to take the steps in formulating a living family trust. Everyone should be so lucky to have this information at their fingertips!
    Nicely done! Five stars!!
  • ricslat Aug 23, 2009 @ 2:11 pm | delete
    Keep the faith my friend...Rick.
  • Redbird23 Aug 21, 2009 @ 11:42 pm | delete
    Thanks Kitty
  • kitty222 Aug 21, 2009 @ 5:24 pm | delete
    This is a very good subject for your first Lens, Redbird! I'll five-star you.
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Redbird23

Hi my name is Jon. Thanks for visiting my site and I look forward to making many new friends. I have been blessed with so many people that have helped... more »

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