Revocable Living Trusts, also known as a RLT, is not for everyone but there are certain situations where you would want to seriously consider an RLT.
The first reason is for privacy. If you have a Will when you die, the Will goes through the probate process and is made public. So when you pass away and your Will is filed, anyone can go to the court house and read the Will to see exactly what your Will stated and who gets your assets. However, with a revocable living trust, your assets and your beneficiaries remain completely private.
The second reason for a RLT is if you own real property outside the state of Texas. Without a revocable living trust, your loved ones will have to go through the probate process in every state that you own property. Putting real property that is outside the state of Texas into a RLT ensures that your loved ones will save time and money not having to go through probate in other states.
The third reason for an RLT is for ease of management. If you have multiple accounts, you can put all those accounts into a revocable living trust in order to manage them in one general location.
The fourth reason to having an RTL is that the creators of the trust can amend or terminate it at any time, but upon the death of one or both of the creators of the trust, the trust can then become irrevocable. An irrevocable trust cannot be terminated or amended by the beneficiaries. This gives the beneficiaries perfect assets protection.
It’s important to speak with a qualified estate planning attorney when considering different types of trusts. Our free book, Do I Really Need a Will, gives additional information on trusts and also has a chapter on what to look for when hiring an estate planning attorney.