Revocable Trusts

Many people think of a revocable trust only in terms of reducing or eliminating probate in their respective estates. While a trust can be a powerful tool for avoiding probate, it can offer substantial benefits to the creator while living. For example, a revocable living trust can simplify the transition of asset management responsibilities from you to someone else (your successor trustee) should you become incapacitated. It provides an opportunity to choose professional management of your assets so that your children (or other relatives) do not need to be burdened with the responsibilities or liabilities of acting as a trustee. For many though, children and relatives will be the first choice for successor trustee. Revocable living trusts can provide easier access to certain assets than can a durable power of attorney, but revocable living trusts are not for everyone, and in many situations where clients are referred to us with established trusts by others, we have determined that the client probably should never have established a revocable living trust. We can help you determine whether a trust is appropriate for you, whether you need it to reduce or eliminate the size of your probate estate, and whether it might be necessary to achieve some other important purpose.

Trusts established prior to death can also provide a significant amount of flexibility in your estate plan. They can be utilized to reduce to reduce (or eliminate) federal estate tax; provide for the management of funds for disabled, unstable, or easily manipulated beneficiaries; provide for beloved pets after your death; hold funds for the benefit of minor children or grandchildren until they reach a suitable age to maturely manage their inheritances; protect Medicaid, SSI, or similar government benefits for a beneficiary; or accomplish numerous other goals you may have in mind as the trust creator. It should be noted that all revocable trusts become irrevocable at death and potentially irrevocable upon incapacity.

Trusts are often described by their general purpose, and naming conventions vary between jurisdictions (and even between attorneys); therefore it is critical that you determine and discuss with your attorney all of your objectives rather than him or her to prepare a particular trust based upon what you may have heard it referred to by others. The following are some examples of more commonly referred to trusts, which you may encounter:

Whether a trust can accomplish your specific goals, whether it is appropriate in your particular situation, or whether it should be established as a separate document or under your last will and testament (a testamentary trust) is a decision which can only be reached in consultation with your attorney, who is familiar with the advantages and disadvantages of each course of action.

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