Q:

What are the advantages of setting up a living revocable trust?

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Quick Answer

Revocable Living Trusts offer several advantages over other forms of estate documents such as wills. These include keeping the plans for an estate private, planning for mental disability and avoiding probate.

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Full Answer

Since the probate process is completed in the local probate court, every document submitted becomes part of the public record. This means that anyone interested can find records of the estate's beneficiaries and assets, as well as who is getting what portions of the estate and how they are receiving it. A Revocable Living Trust is an entirely private contract. It is made exclusively between the Trustmaker and Trustee, so there is no need to file detailed documents with the courts. The only time such documents would need to go to court is in the event of a post-death lawsuit.

One often overlooked advantage of a Revocable Living Trust is the power to specify what should happen in case of a mental disability. This includes identifying how the mental disability is to be determined, what the program of care should be and who will be in charge of the estate at the time of incapacity. This is a valuable component of this type of legal document that many people use when making arrangements for their future.

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