A revocable living trust, also known as a “living trust” or “inter vivos trust,” functions as a legal entity for asset and estate planning. The trustmaker (the individual who sets it up) can undo (cancel) the trust and regain personal ownership of all the assets at any time.
Key Benefits
Probate Avoidance
Assets transfer directly to beneficiaries without lengthy court processes, allowing immediate access to funds. This can save your family significant time and legal expenses.
Privacy Protection
Unlike probate proceedings, trust transfers remain confidential, protecting both trustees and beneficiaries from public disclosure of asset values and potential identity theft.
Incapacity Planning
A successor trustee manages assets if the original trustee becomes unable to do so, avoiding conservatorship court involvement.
Tax Privacy
Beneficiaries can handle tax matters privately outside court supervision.
Drawbacks to Consider
- Higher upfront costs compared to traditional wills
- Time and effort required to transfer assets into the trust
- Necessity of maintaining a separate will alongside the trust
Should You Establish a Trust?
Consider evaluating:
- Asset Transfer Costs — Whether probate expenses exceed trust setup costs in your specific state
- Tax Planning — How trust structure addresses individual tax situations
- Privacy Needs — Value of confidentiality for your estate
- Health Concerns — Benefits of successor trustee management for ongoing health conditions
We recommend consulting an estate-planning attorney to determine whether this approach suits your individual circumstances.
Transferring Securities Into Your Trust
When moving stocks, bonds, or other securities into your revocable living trust, you may need a medallion signature guarantee. eSignature Guarantee can help you complete these transfers efficiently, even when your bank can’t provide the guarantee.