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DO I REALLY
NEED A
REVOCABLE
LIVING TRUST?
A QUICK WALKTHRU OF THE PROS AND CONS
W
hen considering whether to include a Revocable Living
Trust (RLT) as part of your estate plan, you should
understand some of the pros and cons of using a Trust
instead of just a Last Will and Testament.
BENEFITS OF USING A REVOCABLE LIVING TRUST
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AVOIDING PROBATE – This is likely the biggest advantage of a
Revocable Living Trust (RLT). A properly funded RLT will speed
up the process of distributing your assets and save on probate
fees. This is particularly important if you own real estate in
multiple states.
KEEPING THINGS PRIVATE – A RLT does not need to be filed
with the court, so it generally does not become public record.
FORCES YOU TO GET ORGANIZED – Think of the RLT as a ‘bucket’
and all your assets have to be re-titled into the Trust-Bucket.
This step can be beneficial, as it forces you to get organized, list
and detail your assets, and have a better understanding of your
financial picture.
•
direct any inadvertently left out assets into your Trust. Thus,
leading to the next drawback…
PROBATE ENDS UP BEING NEEDED ANYWAY – Sometimes, no
matter how much careful planning went into funding the RLT,
probate is still needed. This happens if an asset is mistakenly left
out of the Trust. Whether it simply wasn’t known about or didn’t
exist before death (i.e wrongful death or medical malpractice
lawsuit). If this happens, you need to administer BOTH the Trust and
a probate estate.
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DRAWBACKS OF USING A REVOCABLE LIVING TRUST
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UP FRONT COSTS ARE HIGHER – It takes more time and money
to set up and fund a RLT, compared to having a Will drawn up.
Attorneys charge more for Trusts because of the time and
complexity involved. There are also deed prep fees and costs.
Keep in mind, a RLT does not avoid inheritance tax, and the
assets in it are still considered a resource for Medicaid purposes.
FUNDING A TRUST IS A REAL PAIN - Once your trust is signed,
you’ll need to contact banks and investment companies to
change account titling and/or up own. You’ll also need new deeds
to transfer real estate into the trust.
YOU STILL NEED A WILL - Yup, after all that work setting up your
RLT, you still need aWill. A ‘Pour-Over’ Will is always needed to
A graduate of Duquesne University and University of Pittsburgh
Law School, Attorney Jeanne Marie Marquette has been
practicing law since 2002. She specializes in the areas of Estate
Planning, Estate Administration, Elder Law and Real Estate
issues. Ms. Marquette had a solo practice in the East End
for many years and is now proud to be one of the founding
members of Olds Russ Marquette and Peace, LLC.
She can be reached by calling the office or
[email protected]
• Wills, POAS & Trusts
• Estates & Probate
• Real Estate & Business Law
• Elder Law & Guardianships
1007 Mt. Royal Blvd. (Shaler), Pittsburgh, PA 15223
412.487.3997
[email protected]
www.oldsruss.com
SHALER ❘ SPRING 2018
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