Revocable Living Trusts

They allow you to retain control of your assets during your lifetime

They avoid probate proceedings, which can be lengthy and expensive

They provide flexibility to modify or revoke the trust during your lifetime

They protect privacy by keeping the details of your estate out of the public record

They provide a plan for managing your assets and distributing them to beneficiaries after your passing

They provide continuity in asset management if you become incapacitated

They don’t provide asset protection – any assets owned by the trust are still subject to creditor claims

They don’t eliminate estate taxes – assets in the trust are still subject to estate taxes

They don’t necessarily provide Medicaid eligibility – assets in the trust may still be considered when determining eligibility for Medicaid benefits

They don’t protect against challenges to your estate plan – heirs may still challenge the validity of the trust in court.

Avoidance of probate: Assets owned by the trust are not subject to probate proceedings, which can be lengthy and expensive. This can help beneficiaries receive their inheritance more quickly and efficiently.

Control over assets: Because you retain control over your assets during your lifetime, you can still use them as you see fit. You can also modify or revoke the trust at any time.

Privacy: Wills are public record, but the details of an RLT are not. This means that sensitive details about your estate are kept private.

Plan for incapacity: An RLT can provide for continuity in asset management in the event that you become incapacitated and are unable to manage your own affairs.

Flexibility: An RLT can be tailored to your specific needs and goals, giving you the freedom to structure it in a way that works best for you and your beneficiaries.

Avoidance of ancillary probate: If you own property in multiple states, an RLT can help you avoid the need for ancillary probate proceedings in those states.

Funding the trust: In order for the RLT to be effective, you must transfer ownership of your assets to the trust. This includes things like real estate, bank accounts, investments, and other assets you would like to include.

Naming a trustee: Your RLT will have a trustee who will manage the trust assets. You should choose someone who is trustworthy, reliable, and able to manage your assets as you would like them to.

Limited asset protection: While an RLT can help to protect your assets from probate, it does not offer protection against creditor claims. Any assets owned by the trust are still subject to these claims.

No estate tax avoidance: Assets in the RLT are still considered part of your estate for tax purposes, so they may still be subject to estate taxes.

Limited Medicaid qualification: Assets in the RLT may still be considered when determining eligibility for Medicaid benefits, so you should consult with an elder law attorney to explore your options.

Proper updating: Your RLT should be updated as your life and circumstances change. You should consider reviewing it regularly to ensure it still accurately reflects your wishes.

Professional assistance: Properly setting up an RLT can be complex, so it’s important to work with an experienced estate planning attorney to ensure it is effective and appropriate for your situation.