Wednesday, April 2, 2014
Is a revocable trust right for you? Here are some advantages and disadvantages:
- 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.
- 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.