Revocable trusts. You have heard about this estate planning tool. You may have even discussed this with an attorney and/or your loved ones. However, there is a good chance you have yet to pull the trigger. Instead, you continue to wait and learn.
While there is nothing wrong with this, at some point you need to compare the pros and cons of a revocable trust to ensure that you are making the right decision. Only then can you feel good about your estate plan and what will happen in the future.
The Pros of a Revocable Trust
Let’s start out by reviewing some of the many benefits associated with a revocable trust. These include but are not limited to:
- Avoid probate. This is the number one advantage of a revocable trust when compared to other options. With this, any assets you hold in the trust are not subject to probate. This will save your loved ones a lot of time and money upon your death.
- Ability to keep provide. Since probate is public, you may be concerned about who will look at your files after you pass on. But again, with a revocable trust, you don’t have to concern yourself with this. Since a revocable trust doesn’t have to be filed in court, it will not become public record.
- Organization. If you are interested in creating a revocable trust, you have no choice but to become organized. You will need to learn how your property is titled, what it’s worth, and much more. Sure, this means a lot of work on your side, but it’s something you need to do if you are going to create a revocable trust.
The Cons of a Revocable Trust
While most people agree that the benefits of a revocable trust outweigh the drawbacks, you must still remember that there are some disadvantages. Here are a few to keep in mind:
- It costs more upfront. When compared to a will, you will pay more upfront for the creation of a revocable trust. Even so, you need to remember that you are getting a lot in return for your money. As the old saying goes, “you get what you pay for.” This is absolutely true with a revocable trust.
- It will take time to fund your trust. It will require you to contact your bank or other financial institution, inform them of the trust, sign paperwork, and make the transfer. However, we do assist in smooth-lining this process so that it doesn’t take a lot of time and you don’t get frustrated.
Now that you have a better idea of the pros and cons of a revocable trust, you should be in better position. You should now have a clear idea of what you should and should not be doing to improve your estate plan.
Note: these are among the most basic pros and cons. You need to decide if each one pertains to your situation. You may find that some of these don’t necessarily impact you.
Soon enough, you need to make a final decision as to what you will do next. Are you going to contact an attorney and learn more about creating a revocable trust? Or will you decide against this for the time being? Only you know what to do, so make sure you keep an open mind.
If you require any assistance, you may want to download our free report entitled “Dangers of Do-It-Yourself Wills and Living Trusts.” This gives you a good idea of what to expect when creating a trust, including the risks associated with tackling the process without a professional.
It may sound simple to create a revocable trust, but there are many mistakes lurking. If you don’t make the right decisions, you could soon find yourself in a difficult position due to an error.
With this report in hand, it’s much easier to realize the benefits of hiring a professional to provide you with guidance.