Many of my potential estate planning clients come into their consultation determined that they need a revocable inter vivos trust (also referred to as a “revocable living trust”). Sometimes they are correct—based upon their financial, family, and/or personal circumstances, a revocable trust is a prudent, well-advised choice. However, on many occasions, the potential client mistakenly believes he or she needs a revocable trust. When, then, is a revocable trust a “good idea?”
Revocable trusts serve many purposes. One might consider creating a revocable living trust if he or she:
1. Is concerned about estate taxation;
2. Is concerned about becoming incapable of handling his or her financial affairs;
3. Is concerned about the public nature of probate and desires privacy;
4. Has a complex family situation such as a blended family; and/or
5. Has out-of-state real estate.
It is always best to consult with an attorney to determine whether a revocable inter vivos trust might be appropriate based upon your circumstances.
