The Revocable Living Trust - An Excellent Way to Avoid Probate
Often people tend to think of trusts as only for the wealthy. However, today many people of relatively modest means are discovering the advantages of revocable living trusts. A key to the increased popularity of the living trust is that people have found that they don’t have to name a bank trust department as trustee. A professional trustee generally charges $1,000 or more annually to manage a trust. But most people are capable of serving as their own trustee. Perhaps the greatest advantage of the living trust over a will is the fact that assets transferred to a living trust avoid probate and the fees and other expenses of probate. The living trust avoids probate without the disadvantages associated with joint tenancy. It affords privacy in the administration of your estate. Trust assets may be distributed to beneficiaries without the delay of probate. Because the trust is revocable, you have the flexibility to change the terms of the trust to meet your individual and family needs. If you have a taxable estate, special provisions may be written into your living trust to reduce or eliminate federal estate tax liability. A professional trustee should be used in any case in which you do not have absolute confidence in the reliability of the individual you are considering for this important task.