What determines whether an estate plan should encompass a revocable living trust (RLT) or a last will and testament (LWT)?
Using an RLT accomplishes “living probate” in which assets are retitled following the execution of the trust documentation. An RLT avoids the expense and delay associated with probate, which is the process of retitling assets from the name of the decedent to the beneficiaries named in the LWT. Consider the following when deciding which format to use: • When an individual owns real estate located in more than one state, usually an RLT can avoid ancillary or another probate procedure in the second state. The more varied and substantial the asset holdings, the more costly the estate administration will be (it can be completely avoided with an RLT). • If a will contest by a family member is anticipated, using an RLT is recommended because it does not provide heirs an opportunity to dispute the will through the probate process. The contesting party would have to file a lawsuit on the basis of contract law, which procedurally is a more difficult task than contesting an LWT. Additionally, the
Related Questions
- My financial advisor and another attorney I met with recommended I utilize a revocable living trust as part of my estate plan. What is a revocable living trust and why did the attorney recommend it?
- What determines whether an estate plan should encompass a revocable living trust (RLT) or a last will and testament (LWT)?
- What is a Revocable Living Trust (RLT)?
