Definition of Revocable Trust
Revocable trusts have become synonymous with probate avoidance, cost savings, and other benefits. Revocable trusts can definitely offer benefits depending on the types of assets you own and the number and type of family members involved in the equation. Despite, these benefits, it is necessary to understand collateral issues related to trusts, and certain steps must be followed to ensure that assets are properly titled in the name of the trust.
After death, although in many situations, the trust will help you avoid probate, there are still creditor issues involved which must be taken into consideration, and if distributions are made prematurely, could subject the trustee to personal liability for amounts disbursed prior to taxes being paid, and creditors satisfied.
Call our office today if you are considering utilizing a revocable trust in your estate plan and we will discuss your options with you.