What are the primary advantages of having a living trust?
The main advantage of having a Living Revocable Trust is that, after the death of the testator, it instantly transfers title to assets to the successor trustee(s) by operation of law, without the intervention of the probate court. A properly drafted Living Trust is also valid throughout the United States of America in all fifty states. The Living Trust is also private and does not need to be recorded with the county recorder or with the government. It is valid and binding if it possesses the basic attributes of a trust and has a Trustor, trustee, beneficiary, and corpus (assets). A Living Trust has also been endowed with certain advantages under the tax law. The trust can be especially effective in allowing a married couple to preserve their rights to individual Federal Estate and Gift Tax exemptions. Unlike a Will, a trust also provides for estate administration during periods where the testator may be incapacitated and unable to administer trust assets without assistance.
