What is a Revocable Living Trust? Do I Need One?
The term “living trust” (also known as a “revocable trust” or “inter vivos trust”) is generally used to describe a trust (a) which you can create during your lifetime, and (b) which you can revoke or amend whenever you wish. Much has been written recently regarding the use of living trusts as a solution for a wide variety of problems associated with estate planning through wills. The benefits of living trusts are often greatly overstated, especially in jurisdictions (like Pennsylvania) where the probate of a will is not an expensive or complicated process. One of the common misperceptions of living trusts is that they will help to avoid taxes. A revocable living trust will not accomplish any tax savings. An “irrevocable” living trust, that is permanent, unchangeable, and outside the control of its creator, is created almost exclusively to produce certain tax results for the wealthiest of people.
The term “living trust” (also known as a “revocable trust” or “inter vivos trust”) is generally used to describe a trust (a) which you can create during your lifetime, and (b) which you can revoke or amend whenever you wish. Much has been written recently regarding the use of living trusts as a solution for a wide variety of problems associated with estate planning through Wills. The benefits of living trusts are often greatly overstated, especially in jurisdictions (like Pennsylvania) where the probate of a Will is not an expensive or complicated process. One of the common misperceptions of living trusts is that they will help to avoid taxes. A revocable living trust will not accomplish any tax savings. An “irrevocable” living trust, that is permanent, unchangeable, and outside the control of its creator, is created almost exclusively to produce certain tax results for the wealthiest of people. A living trust is legally in existence during your life, has a trustee who is currently ser
The term “living trust” (also known as a “revocable trust” or “inter vivos trust”) is generally used to describe a trust (a) which you can create during your lifetime, and (b) which you can revoke or amend whenever you wish. Much has been written recently regarding the use of living trusts as a solution for a wide variety of problems associated with estate planning through wills. The benefits of living trusts are often greatly overstated, especially in jurisdictions like Pennsylvania where the probate of a will is not an expensive or complicated process. One of the common misperceptions of living trusts is that they will help to avoid taxes. A revocable living trust will not accomplish any tax savings. However, an “irrevocable” living trust, that is permanent, unchangeable, and outside the control of its creator, may be created to produce certain tax results for the wealthiest of people. A living trust is legally in existence during your life, has a trustee who is currently serving, an
