what are the advantages and disadvantages of a revocable living trust?
10804
['An increased interest in estate planning has contributed to a rise in popularity of revocable living trusts. ... ', 'It lets your estate avoid probate. ... ', 'It lets you avoid “ancillary” probate in another state. ... ', 'It protects you in the event you become incapacitated. ... ', 'It offers no tax benefits. ... ', 'It lacks asset protection.']
814719
Once the trust creator establishes an irrevocable trust, he or she no longer legally owns the assets he or she used to fund it, and can no longer control how those assets are distributed. ... A revocable living trust, on the other hand, does not protect your assets from your creditors.
74546
['Preference in dividends.', 'Preference in assets, in the event of liquidation.', 'Convertibility to common stock.', 'Callability (ability to be redeemed before it matures), at the option of the corporation. ... ', 'Nonvoting.', 'Higher dividend yields.']
787574
The fees you pay to set up a revocable trust are generally considered personal expenses, which are not deductible for tax purposes. ... The Internal Revenue Service considers these valid deductions, and they can be claimed as miscellaneous itemized deductions.
999041
Advantages for investors include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing. Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.
167532
An inter-vivos trust is an estate planning vehicle that can own the assets during the trustor's lifetime. ... A living trust is revocable, which means any of the provisions and designations can be changed while the trustor is alive.
345739
['Better Pricing Plans Availability. ... ', 'Enhanced Execution. ... ', 'Benefits of Live Migration. ... ', 'Private Network. ... ', 'Commitment to Constant Development. ... ', 'Control and Security. ... ', 'Redundant Backups.']
1251461
An irrevocable trust can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets into the trust, effectively removes all of his rights of ownership to the assets and the trust. This is the opposite of a revocable trust, which allows the grantor to modify the trust.
786767
A revocable trust has only one advantage for the grantor and beneficiaries: the trust does not have to go through probate court, an often time-consuming and expensive process. ... A blind trust is revocable; the grantor can cancel the trust at any time, and transfer responsibility to a different trustee.
1338021
Unlike a Will, which has to be filed with the court at the start of the probate process, a Revocable Living Trust generally does not have to be filed or recorded anywhere. Unless there's a lawsuit concerning your trust, it won't become a matter of public record.
476778
Assets in the trust are included in your estate for federal estate-tax purposes and are generally subject to state death taxes as well. However, a living trust can be drafted to include the same tax-saving provisions that can be placed in a will.
235846
['Mutual funds are the most popular investment choice in the U.S.', 'Advantages for investors include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing.', 'Disadvantages include high fees, tax inefficiency, poor trade execution, and the potential for management abuses.']
850135
A revocable trust will not protect your assets because your creditors can step into your shoes and revoke your trust. For example, assets titled to your revocable living trust are vulnerable to your present and future lawsuits. Nevertheless, a living trust will help you avoid probate.
484123
There are two basic types of trusts: living trusts and testamentary trusts. A living trust or an "inter-vivos" trust is set up during the person's lifetime. ... Living trusts can be either "revocable" or "irrevocable."
228432
['Safety. ... ', 'Better returns than savings deposits. ... ', 'Fixed, predictable returns. ... ', 'Wide selection of terms. ... ', 'Wide selection of account options. ... ', 'Limited liquidity. ... ', 'Inflation risk. ... ', 'Low relative returns.']
151740
The signing of estate planning documents, including revocable trusts, are frequently witnessed and the signatures notarized as a matter of custom. California laws do not require either for creating or amending a living trust. But it is a good idea to have the document notarized.
549742
Although an irrevocable trust, in theory, cannot be changed or cancelled, there are ways to close down the trust and, if you wish, transfer assets to a new one. If the trust no longer serves the purpose for which it was set up, you may revoke it or draw up amendments that substantially change its terms.