Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Wednesday, April 2, 2014

Trust Advantages and Disadvantages

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Is a revocable trust right for you?  Here are some advantages and disadvantages:

Advantages

  • Avoid the cost and delay of probate.        
  • Property remains available to be used for your benefit during a disability.  
  • You remain in control of your assets until you die, then a successor trustee distributes your assets to named beneficiaries.   
  • Revocable trusts may allow flexibility in naming out-of-state individuals or trust companies as primary administrator after your death.  
  • There is no need to reregister securities after death if assets were transferred into the trusts name.

Disadvantages

  • Reregistering property in the name of the trust may be burdensome and involve filing fees. 
  • Creditors may have access to the trust.   
  • Revocable trusts costs substantially more to establish than a Will.    
  • Unlike Wills, revocable trusts may not change automatically upon divorce, marriage, or birth of a child.

See Frank Mokosak, Advantages and Disadvantages of Trusts, The Des Moines Register, March 31, 2014.

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Comments

Why does no one recognize that a trust is a taxable entity with filing requirements?

Posted by: Cheyanna Jaffke | Apr 7, 2014 12:27:56 PM

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