What are some disadvantages of revocable living trusts?
A. First, a revocable living trust is more expensive than a will. The additional expense of the trust is primarily due to additional drafting; for example, trust provisions for the management of property during the trust creator’s lifetime and the transfer of the trust creator’s assets into the trust. Second, a revocable living trust also requires attention to certain formalities during the trust creator’s lifetime. For example, sales and purchases of trust property must be transacted in the name of the trust (as the legal owner of the property). Consequently, individuals and companies dealing with the trust (such as banks, title insurance companies, and escrow companies) will frequently want to review the administrative provisions of the trust document. These formalities are only slightly more complicated than if the transactions were completed without a trust, but they do require additional attention to detail which may be inconvenient.
