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Top 3 Reasons to Form a Revocable Living Trust

Attorney Thomas B. Burton discusses the top 3 reasons many people choose to use a Revocable Living Trust as part of their estate plan.

Wondering whether a Will or a Trust is right for you? Click here to obtain my Free Will vs. Trust Estate Planning Guide to help you in your decision making process.

Transcript of Video: Top 3 Reasons to Form a Revocable Living Trust

Today's topic: What are the three main

reasons to form a revocable living trust?

First, avoidance of probate. Probate

involves time and expense at its

shortest it's six months at its longest it's

two years or more you can plan to spend

three to five percent of your estate on

court filing fees, attorneys fees,

accountants fees, and related personal

representative fees if your estate goes

through probate so many times you'll

hear people do a revocable living trust

for the main reason of avoiding probate

and that in itself is a worthwhile goal

The second main reason people favor a

revocable living trust is privacy a Will

means your Will must be filed with

the court and becomes public record that

means anyone can look through it and see

exactly what you left to each person

with a revocable living trust it's a

private document it is not filed with

the court that's between you and your

trustee your trustee is someone you name

to administer your estate as part of

your trust

watch my other videos for more about how

revocable living trusts work and the

third reason to form a revocable living

trust is it can help you avoid the need

for a guardianship if you are ever

temporarily incapacitated or permanently

incapacitated due to mental or physical

disability as you get older sometimes

your ability to manage your own

financial affairs diminishes if your

assets are in a revocable living trust

your trustee can take over and manage

those assets for you while you're alive

until you're gone and after your death

if you do not have a revocable living

trust often the only alternative is for

your friends or relatives to petition

for a guardianship meaning the court

must appoint a guardian - who has the

legal authority to manage your assets

this is an expensive and often arduous

process it can cost anywhere from $3,000

to $6,000 to more for a contested

guardianship and it is often very

taxing on the person seeking the

guardianship and on the potential ward

so those are the three main reasons to

form a revocable living trust there's

many other good reasons but those are

some of the top three I hear about over

and over.

© 2018 Law Office of Thomas B. Burton. All Rights Reserved.

Transcript and captions provided for ease of access for the hearing impaired.

For questions about this topic, or to suggest a topic for a future blog post, please contact my office.

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