When I meet with clients to discuss their estate planning goals, our first discussion generally focuses on the difference between Wills and Trusts, as well as the pros and cons of each option. In many discussions, I have found that clients initially request a Will because they think that a Revocable Trust is only for the very wealthy. In this blog post, I discuss four myths about Trusts and why a Revocable Trust might be a good option to include in your comprehensive estate plan.
Myth 1: Only very wealthy people need trusts
As stated earlier, many of my clients believe that Trusts are only for wealthy individuals and families. In fact, Trusts can be a helpful estate planning tool for many individuals. Even for average individuals, drafting and properly funding a Trust can help your estate avoid probate court after your death and can help protect your family in the event of your incapacity or death.
Myth 2: You will always avoid Probate with a Revocable Trust
Yes, having a properly drafted and funded Trust will help your estate avoid Probate. However, the key word here is funded. Once you have worked with an estate planning attorney to draft your Trust, you need to ensure that all of your assets are titled in the name of the Trust. I have worked with clients who have had to open probate estates when their loved one died with a Trust but left one or two assets out of the Trust. Once you draft your Trust, take the time to review your assets to ensure that your Trust is properly funded.
Myth 3: You lose control of your assets with a Trust
One concern I hear from clients is that if they put together a Trust, they will lose control of their assets. With a Trust, the grantor (the person who established the trust and funds the assets into the trust) maintains control of all their assets until death, or until and unless they choose to resign as trustee and have a successor trustee act. During their lifetime, the grantor maintains control of their assets including how they are distributed to beneficiaries. With a Revocable Trust, the grantor can also edit or even revoke their Trust should circumstances change.
Myth 4: Trusts are expensive to create
Trusts are more expensive to create than Wills, however, they can save your estate and your loved ones money after your death by avoiding Probate court. Depending on the size of your estate, probate expenses could cost thousands of dollars. If there is a family dispute, the costs are even higher. By creating and properly funding a Revocable Trust when you are living, you are helping save your estate and loved ones significant amounts of money as well as relieving them from the stress of probate proceedings.
If you have additional questions about Trusts, Wills, Probate, or estate planning generally, contact attorney Lauren Kaplan at lkaplan@curlerlaw.com or (312) 952-1077 ext. 2 for a free consultation.