Revocable Trusts Candidates and Considerations

Revocable Trust Candidates

     
Avoids probate

At the trust creator's death, the revocable trust assets are considered non-probate property and therefore not subject to state probate proceedings or judicial review. Consequently, the ownership passes to the trust beneficiary by operation of law with no cost to the estate.

     
Reduces expenses

Consolidation of the trust creator's property into a single receptacle may result in volume discounts and reduced trust operating expenses often associated with multiple financial accounts.


     
Avoids delays in distribution

The disposition of trust property is not subject to administrative oversight and possible delays.

     
Allows trust creator to secure his or her own interests

In the event of serious illness resulting in incapacity to manage one's own finances, standby provisions can be incorporated in the trust instrument thereby eliminating guardianship proceedings.


     
Assures privacy

A revocable trust remains private on becoming irrevocable at the grantor's death, as opposed to the public notice required on a probate of the will. Inequity or discriminatory behavior will never become an issue in a non-probate proceeding.

     
Provides for experienced investment management

The ability to engage professional advisors on a probationary basis while alive allows the grantor of a revocable trust the freedom to be wrong, a luxury that does not exist after death or with an irrevocable trust.  Of course, many states do have costly and time-consuming judicial proceedings that theoretically allow the court to alter the terms of the irrevocable trust instrument including the replacement of the trustee and trustee's designated advisors.