Learn More About Revocable Living Trusts and Why You May Want to Create a Trust to Transfer Your Monetary Assets
WHY WOULD I WANT A REVOCABLE
LIVING TRUST?
DENNIS D. DUFFY Iowa Estate Planning Attorney
When you are planning your estate you can use a last will to express your final wishes regarding the transfer of your monetary assets. The last will is the most commonly utilized vehicle of asset transfer in the field of estate planning, but it is not your only option. You may want to consider the creation of a revocable living trust as an alternative.
A POPULAR MISCONCEPTION Revocable living trusts are often used by those who would like to arrange for asset transfers outside of probate. When you use a last will to arrange for the distribution of assets that were in your personal possession at the time of your death, the property becomes probate property at first. The heirs to the estate do not receive their inheritances until after the estate has been probated and closed by the court. There are some drawbacks that go along with the probate process. For one thing, it can be quite time-consuming. The exact duration of probate will vary on a case-by-case basis depending on the jurisdiction in question and the nature of the circumstances. However, suffice to say that it will take months at
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minimum. There are cases that are quite complicated that wind up in probate for multiple years. Probate is not free. There are considerable costs that can accumulate during the probate process. The court will charge a filing fee, and there are legal expenses. The executor of the estate is entitled to remuneration for his or her time and effort. be necessary, and there may be appraisal and liquidation expenses. When you add all of this together a noticeable portion of the estate can be absorbed during probate. Anything that is spent during probate would have otherwise gone into the pockets of the heirs to the estate. If you want your loved ones to receive their inheritances in a timely and cost-effective manner, you may want to consider a revocable living trust, because the asset transfers will not be subject to the probate process.
ONGOING CONTROL With a revocable living trust you retain ongoing control of the assets. As the grantor of the trust you can act as the trustee and the beneficiary while you are still living. You can change the terms as you see fit. You can even rescind or
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revoke the trust at any time and re-assume personal possession of the assets that you have conveyed into it.
INCAPACITY PLANNING Revocable living trusts are for the most part used to avoid probate. However, there is another advantage that you gain when you create a revocable living trust.
A significant percentage of senior citizens become incapacitated late in their lives. There are various different causes of incapacity, but the existence of Alzheimer's disease alone is enough to make incapacity planning a must. Somewhere in the vicinity of 40 percent of people who are at least 85 suffer from Alzheimer's disease. If you were to experience Alzheimer's induced dementia, you may become unable to handle your own financial affairs. When you create a revocable living trust you can name a successor or disability
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trustee. This trustee would be empowered to administer the trust in the event of your
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incapacitation. You could name an individual that you know to act as the disability trustee if it becomes necessary. However, you may want to consider the utilization of a professional fiduciary entity such as a trust company or the trust department of a bank. When you use a corporate trustee you gain some advantages. The longevity of the trustee is not a factor, the assets will be managed with expertise, and there is inherit oversight. CONCLUSION A revocable living trust will facilitate the transfer
Living Trusts: Plan Ahead for Your Family's Future Creating Trusts and Living Trusts Put Your Family First
of assets to the beneficiaries outside of the legal process of probate. This process is timeconsuming, and it can be expensive. When you create a revocable living trust you do not surrender control of the assets while you are living.
Why Would I Want a Revocable Living Trust?
A Living Trust is a very versatile estate planning tool - one that can be customized to suit all your needs. Click to Download Your Free Report Today
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You can also account for the possibility of incapacity by naming a disability trustee. To learn about the benefits of revocable living trusts in greater detail, arrange for a consultation with a licensed estate planning attorney.
REFERENCES AARP http://www.aarp.org/money/estate-planning/info-092010/ten_things_you_should_know_about_living_trusts.html Iowa Bar Association http://www.iowabar.org/?page=LivingTrust
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About the Author Dennis D. Duffy Dennis Duffy combines an extensive background in business with a wide range of legal experience to provide his clients with a uniquely practical perspective. An attorney since 1989, he practices primarily in Estate Planning, Wills, Trusts and Probate. Mr. Duffy also offers frequent educational seminars on a variety of estate planning topics to both the general public and private groups in the Quad Cities area.
Experience Mr. Duffy has been practicing law since 1989, when he joined the general practice firm of Bozeman, Neighbour, Patton&Noe in Moline Illinois. In 1990, Mr. Duffy and five other attorneys founded the law firm of Anderson & Nelson, with offices in Rock Island, Illinois and Davenport Iowa; the firm eventually grew to 12 attorneys, with Mr. Duffy as managing partner. He founded Duffy Law Office in 1995. Before returning to school for his advanced law and business degrees, Mr. Duffy worked for nearly a decade for Per Mar Security & Research Corp. in Davenport, as Vice President. Mr. Duffy is a member of the American and state bar associations of both Iowa and Illinois as well as the Scott and Rock Island County Bar Associations. He is an executive member of the American Academy of Estate Planning Attorneys. He is coauthor of the book Estate Planning Basics – A Crash Course in Safeguarding Your Legacy. Also, the American Academy of Estate Planning Attorneys announced that Mr. Duffy was honored with the Academy Fellow designation. The Fellow program recognizes Academy Members who demonstrate advanced expertise and significant practical experience in the estate planning, trust, tax planning, guardianship, probate and estate administration fields.
Duffy Law Office Helping Families Preserve their Wealth www.duffylawoffice.com 1840 E. 54th Street Davenport, IA 52807
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(563) 445-7400
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