What Is a Revocable Trust, and Do I Need One?
Palm Beach Gardens Revocable Trust Attorney
Dedicated trust and estate planning attorney working with Florida residents to plan their estates with revocable trusts
A trust can be a key component of an estate plan. Trusts allow you to manage your assets during your lifetime while also providing for their distribution to your heirs after your death. At the North Palm Beach offices of Kitroser Lewis & Mighdoll, premier estate planning attorney Mitchell I. Kitroser has devoted more than 32 years addressing client concerns about relinquishing control over assets to a trust. For many individuals, revocable trusts are an appropriate method of addressing those concerns.
Managing your assets with the creation of a revocable trust
Any trust is a vehicle by which rights in property are held. Trusts are created by a written trust agreement, and the assets it controls are managed by a trustee. Trustees serve in a fiduciary capacity which means they are held to a high standard of duty and loyalty. They must act solely in the best interests of the trust and its beneficiaries.
Revocable trusts are created during your lifetime, which is why they are referred to as “living trusts.” After signing the written trust agreement containing the terms under which your assets are held and providing for the manner in which they are managed by the trustee you designated, title to your assets are transferred to the trust.
What sets revocable trusts apart from other types of trusts is your ability, as the creator of the trust, to revoke, modify, amend or change the trust whenever you wish. This ability to retain control of your assets even after the title is transferred to the trust is what makes revocable trusts appealing to so many individuals. Our Palm Beach Gardens estate planning attorneys take as much time as is necessary to explain the advantages and disadvantages of the revocable nature of these types of trusts and how it will affect your overall estate plan.
Benefits and disadvantages of using a revocable trust
Depending upon the goals of your estate plan, a revocable trust can offer several benefits, including:
- Asset management if you are incapacitated: Your incapacity or incompetence does not affect your trustee’s ability to manage and invest your assets because they are held in the name of the revocable trust.
- Avoids probate issues upon your death: The assets held and controlled by a revocable trust continue to be managed and controlled by your trustee after your death. Unlike a will that must be offered for probate in order to pass your estate to your family and loved ones, the terms of your revocable trust determine how its assets will pass to the beneficiaries you named in the trust agreement.
- Flexibility when assets are in multiple states: If you own real estate in Florida and in other states, allowing the properties to pass to your heirs under your will could result in the representative of your estate being forced to file probate proceedings in multiple states. A revocable trust avoids unnecessary delays and expenses associated with the distribution of real property that is held in the trust’s name at the time of your death.
There are, however, some disadvantages associated with a revocable trust that you should discuss with one of our skilled trust and estate planning attorneys. Some of the drawbacks to using a revocable trust include:
- Assets not protected from creditors: The maker’s ability to change, modify and terminate a revocable trust means that the assets held by the trust are still within your control. Therefore, your creditors can enforce judgments by seizing the trust’s assets during your lifetime.
- Not an effective vehicle for Medicaid planning: Your control over a revocable trust can result in the assets being considered when applying for Medicaid benefits.
- Expenses associated with its creation: The cost of creating a revocable trust is usually greater than the cost associated with drafting a will. There also could be costs and fees associated with transferring title to real property and other assets into the name of the trust.
Contact an experienced Palm Beach Gardens estate planning attorney for help with your revocable trust and all your estate planning needs
The Palm Beach Gardens trust and estate planning attorneys at Kitroser Lewis & Mighdoll are knowledgeable and experienced in the creation and administration of revocable trusts. We take the time to review your specific needs and goals before designing an estate plan that is right for you. Contact us today to schedule a free consultation by calling 561-721-0600, or contact us through our website.
