|What is a Revocable Living Trust? Click here to download our brochure on Revocable Living Trusts | PDF |
A Revocable Living Trust (" Revocable Trust") is a popular estate planning tool which offers many benefits when implemented as part of the client's overall estate plan. A Revocable Trust is a trust into which the person creating the trust ("Client") transfers a certain amount of his or her assets while the Client is living. Any assets which are transferred to a Revocable Trust will continue to be used for the Client's benefit during the Client's life. Upon the Client's death, a Revocable Trust sets forth how the property in the trust is to be administered and distributed among the Client's named beneficiaries (i.e., spouse, children, grandchildren, etc.). The property in the trust could be distributed outright or held in trust for a Client's named beneficiaries depending on the Client's estate planning objectives.
What are the Benefits of a Revocable Living Trust?
The following is a list of some of the benefits which can be achieved by utilizing a Revocable Trust as part of an estate plan:
Probate Avoidance. Assets placed in a Revocable Trust are not subject to the probate process and thereby avoid the delay, complexity and expense of probate. The probate process typically lasts well over a year and can sometimes last two years or more. Further, the probate process can be costly. Below is a Schedule of the Missouri Probate fees.
Complete Control and Flexibility. Assets transferred to a Revocable Trust continue to be controlled by the Client who created the Revocable Trust if that is what is desired.
Prevents Conservatorship. A Revocable Trust allows the Client to name who he or she wants to administer the trust assets in the event the Client becomes disabled.
Preserves Privacy. A Revocable Trust is a private document and, unlike a Will, not a matter of public record.
Minimizes Emotional Stress on Family. Because Revocable Trusts avoid probate and result in timely distribution of assets, emotional stress on surviving family members is diminished.
Centralized Management. By placing assets in a Revocable Trust, they are all under "one roof" which can provide for centralized management.
Protection of Dependents. Because a Revocable Trust sets forth how property is distributed at death, a Client can choose to maintain the property in trust even after death to provide an ongoing source of funds for young children or other dependents with special needs.
Reduce or Eliminate Estate Taxes. Revocable Trusts can be drafted and funded in such a way to ensure full utilization of the marital deduction and unified credit (or applicable credit) for estate tax purposes.
Easy to Set Up and Maintain. Setting up a Revocable Trust is relatively easy and requires very little maintenance.
How Can I Learn More About A Revocable Trust?
Contact your Saint Louis Trust attorneys at The Kaiser Law Firm, P.C. at (314) 966-7766 for a more detailed explanation of a Revocable Trust and how it may play a part in your estate plan.