Revocable Living Trust

Advantages

• You see your Trust work.
• If you are not your own Trustee, you observe the trustee in action.
• You avoid probate and the trust can be used to avoid ancillary probate – that is probate of property in another state.
• You avoid the attendant publicity of probate.
• You will probably save your estate a substantial amount of fees and costs.
• You can provide for uninterrupted management at death.
• It’s a good way to pass property to charity and save taxes at death.
• You can change your mind.

Disadvantages

• There are no immediate tax advantages.
• Initial cost and trouble of setup. Property must be transferred to the trust.
• It slightly complicates subsequent dealings with the property.
• It may require payment of an annual trustee’s fee if someone besides yourself is trustee.
• At time of termination, there may be fees.