Benefits of a revocable living trust include privacy in estate planning, the possibility of planning for mental disability and other incapacitating circumstances, and the avoidance of probate, states About.com. Revocable living trusts are flexible, notes AARP. They save significant money and time in transferring assets, claims Suze Orman on Bankrate.Continue Reading
Because the creator of the trust has already designated assets to trustees and beneficiaries in a revocable living trust, the process of probate that accompanies the disposition of a will is often avoided, as reported by About.com. Although probate is a matter of public record, revocable living trusts are private agreements, ensuring confidentiality for an estate plan unless there are extraordinary circumstances. If the creator of the trust becomes too ill or disabled, revocable living trusts allow trustees to handle the trust maker's assets without the need for court intervention.
The creator of a revocable living trust has full control over it and can change the terms of the trust, the trustees, the beneficiaries or the assets at any time without the assistance of a lawyer, points out AARP. By avoiding probate, a revocable living trust saves the beneficiaries both money and time, states Orman. Depending on the state, probate can take years and cost a significant amount in lawyer's fees and other expenses, while a revocable living trust costs little once it is established.Learn more about Financial Planning