As you go through the estate planning process in Madison Wisconsin, you will consider whether you should include a revocable living trust. During this time, it is important to understand the advantages and disadvantages of using a trust, as opposed to a simple will.
Advantages of a Revocable Living Trust in Madison WI
Below are three of the biggest advantages of a revocable living trust in Madison WI:
1. Avoiding probate. There are many advantages of using a revocable living trust, but this is one of the biggest. Why subject your beneficiaries to the probate process when you can use a revocable living trust to avoid it?
2. Privacy is important. Without a revocable living trust, the probate process is made public. This means that everybody can see what you left behind, who is getting it, and much more. Do you really want this to happen? If privacy is a concern (and it is to most people), you can ensure that everything is kept hush-hush by using a revocable living trust.
3. Forces you to get on the ball. Many people think they have a grasp on their estate plan, but soon realize that nothing is further from the truth. When you take the time to setup a revocable living trust, you are forced to learn more about your financial situation. This will include digging up account statements, car titles, real estate deeds, and much more.
Disadvantages of a Revocable Living Trust
With the advantages out of the way, let’s look at some of the disadvantages:
1. Upfront costs can be high. While not always the case, setting up a revocable living trust is almost always more expensive than creating a simple will. This may be true, but over the long run this money comes back many times over.
2. The funding process can be a challenge. Setting up a revocable living trust is just the start. From there, you will need to contact your banks, insurance companies, and many other institutions to transfer account ownership.
3. You still need a last will. Just because you have a revocable living trust does not mean you can forget about a last will and testament. This is a must, just in case something happens while you are in the process of setting up a revocable living trust or it is only partially funded when you pass on.
These are the basic advantages and disadvantages of a revocable living trust in Madison WI. If you have any additional questions, a Madison Wisconsin estate planning attorney can step in to offer personal guidance. Go to https://khtlawyers.com to find out much more information.