Revocable trusts, or Living Trusts, are useful in a variety of circumstances. Here are three situations when having a Living Trust will reduce complexity and save money.
Out of State Property. If you are a resident of one state, but own property in another, then your out of state property should, in most cases, be held in your Living Trust. Titling your out of state property in your Living Trust will avoid having to conduct an ancillary probate proceeding at death.
Avoid Probate. Avoiding probate is a reason many individuals and couples will establish a Living Trust. Probate can be expensive and time consuming. A properly funded Living Trust though will avoid probate because your assets subject to probate will have been transferred to your Living Trust during life.
Privacy. Because you are not required to file a Living Trust with the court, the terms of your Living Trust remain private. Individuals or couples desiring privacy may benefit by establishing a Living Trust because the terms, assets, and beneficiaries are not subject to the same publicity as that in a probate court proceeding.
It is worth noting that all of the benefits afforded by a Living Trust only are as good as having the trust properly funded. If your individually owned property is not titled or contributed to your trust during life, then the benefits listed above will not be available.
