What are the advantages and disadvantages of a revocable living trust?
a. Unless court intervention is requested, a Revocable Living Trust is designed to operate without court involvement. Therefore, a Trust that is properly funded and administered can completely avoid probate expenses and delays. b. A Revocable Living Trust offers more privacy than a Will. However, after the settlor’s death, the Trust becomes irrevocable, and the trustee is required to give a complete copy of the irrevocable portion of the trust to all beneficiaries and to any heir who requests it. As a result, beneficiaries may gain knowledge about the gifts given to other beneficiaries. In most circumstances, though, neither the trust terms nor the trust assets are made a matter of public record. c. A Revocable Living Trust requires ongoing management of the decedent’s estate until the trust is terminated. Trustees are entitled to reasonable compensation. Most trustees charge an annual rate of 1% (or less) of the fair market value of the trust’s assets. 7. What is a Living Will? The te
